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Y2K software suit dismissed

A judge dismisses a class action suit against Macola Software, a decision that may set a precedent for Y2K compliance issues, attorneys say.

    A judge has dismissed a class action lawsuit against Macola Software, a decision that may set a precedent for Year 2000 compliance issues, attorneys said.

    As reported earlier, a law firm representing a Connecticut-based company filed a suit in an Ohio court against Macola, accusing the accounting software maker of breach of warranty and fraud in connection with the alleged failure of its Macola Progression Series Software 6.0 to process dates beginning in 2000 correctly, according to a statement by the law firm.

    However, Back to Year 2000 Index Page Judge Robert S. Davidson recently held that Macola had, in accordance with its licensing agreement, fulfilled all its contractual and legal obligations to its end users.

    In issuing the reasoning for the verdict, Judge Davidson stated that the "plaintiff has, by [its] own admission, failed to state a claim for breach of warranty or fraud. Accordingly, the defendant's motion to dismiss is well founded."

    Macola also added that the company is offering multiple Year 2000 programs for customers using past versions of Macola software that may not be Year 2000 friendly.

    The millennium bug refers to the fact that most computers are programmed to register only the last two digits of the year, meaning that "2000" may be read as "1900." If left uncorrected, such programs could generate errors and scramble the computers that companies use to keep track of customers, run their payrolls, and handle their accounts.

    "Macola has maintained a position of confidence ever since this suit was introduced, and has done everything possible to furnish our customers with reliable software that addresses their needs for the century change. This ruling means that we can continue to concentrate on providing these solutions well into the future," Macola chief executive Bruce A. Hollinger said in a statement.

    The Macola decision comes just days after a Y2K suit filed against medical equipment vendor Medical Manager was settled after it was found that Medical Manager was indeed charging customers to upgrade to Y2K-compliant software rather than provide free patches.