(Washington, D.C.) - At the conclusion of the June 19, hearing on the remedy phase of the Microsoft case, Iowa Attorney General Tom Miller called his participation in the matter the highlight of his career.   Citizens Against Government Waste (CAGW) reacted by questioning Miller’s priorities and perspective. 

“Certainly, flying to Washington on dozens of occasions, sleeping in posh hotels, rubbing elbows with high-powered lawyers, and appearing before more television cameras in one day than appear in Des Moines in a given month must be quite exhilarating,” CAGW President Tom Schatz.  “But the taxpayers of the state of Iowa won’t be so excited when they get hit with the bill for the state’s continued participation in the Microsoft case.”

Iowa is one of nine states, along with the District of Columbia, that continues to pursue a draconian remedy in the Microsoft trial.   Nine other states and the U.S. Department of Justice settled the matter last November.  Since then, the remaining litigants have spent millions of dollars and hundreds of hours in their pursuit of one of the world’s most successful companies.  The case is now in the hand of Judge Colleen Kollar-Kotelly.  Her decision will certainly be appealed, leading to several more years of litigation and additional opportunities for the Iowa attorney general to grab the limelight and risk taxpayer dollars.

In his courthouse remarks, Mr. Miller referred to the “gamble” taken by Microsoft by allegedly refusing to discuss specific compromises it might make with the states’ proposed remedy.  “The real gamble in this case is what Attorney General Miller has done with the taxpayers’ money in Iowa,” Schatz said.  “On top of that potential loss, it is estimated that agreeing to the states’ proposed remedy would cost consumers nationwide an additional $50 to $125 billion for computer software over three years.  The attorney general’s office is supposed to fight for consumers, not do them harm.”

 Legal experts have concluded that if Judge Kollar-Kotelly decides to accept the settlement from last fall, the states could walk away empty-handed when it comes to covering their expenses.   If she agrees with some of the states’ proposals, they may be reimbursed for a portion of their expenses, although she has discretion to award “reasonable” fees.  The hourly rates charged by the Washington law firm of Williams and Connolly are among the highest in the city, and may not be paid in full. 

To date, the only information available on Iowa’s costs is a submission to the U.S. District Court in 2000, showing 3,227 hours spent on the case and a request for $1.1 million in reimbursement—­the highest per capita request in the nation.  The state has failed to respond to CAGW’s requests for information on expenses under the Freedom of Information Act in both 1999, and January of 2002.

“The only positive aspect of yesterday’s hearing was the end of constant sightings of Attorney General Miller in the courtroom and at the microphones on the courthouse steps, as well as the reduced risk to taxpayers in Iowa,” concluded Schatz.  “It’s now time to come clean on expenses.”

Citizens Against Government Waste is the nation's largest nonpartisan, nonprofit organization dedicated to eliminating waste, fraud, abuse, and mismanagement in government.