(Washington, D.C.) – After closing arguments were made today in the Microsoft antitrust case, California taxpayers could find themselves footing the bill for the trial.  Throughout the current phase of the trial, Citizens Against Government Waste has been (CAGW) has been informing taxpayers of the high cost of the continued litigation by nine state attorneys general and the District of Columbia.  To date, CAGW estimates that the states have spent $1,420,000, a figure based on information collected from other leading litigation firms in Washington.

“The states have spent nearly $1.5 million so far with no guarantees of being able to win this case,” CAGW President Tom Schatz said.  “Even if the states were to win their arguments, it is up to the judge to decide which party pays for the legal fees.  This is a lot of money for the state attorneys general to be risking on behalf of the taxpayers.”

California taxpayers will face the heaviest burden if Judge Colleen Kollar-Kotelly decides that the states have to pay all or even some of their legal fees.  Recently California Attorney General Bill Lockyer has admitted that his state will be bearing the majority of the costs associated with the case.  Last fall he estimated that the states have spent $20 million on the case.

“It would be nice to know exactly how much money the states are risking on this case,” stated Schatz.  “Unfortunately, they have not been forthcoming in requests for such information.  Maybe now that the trial is almost over, they will provide a clear answer.”

CAGW has repeatedly asked for information regarding the states' expenditures in the case by filing Freedom of Information Act requests with the attorneys general, most recently in January 2002.  The states have either denied the requests or provided incomplete responses.  The Office of Attorney General Bill Lockyer in California sent a letter to CAGW claiming that as of May 8, they have spent more than $6.9 million, not including attorney hours or travel, on the case in fiscal year 2001-2002, far exceeding CAGW's very conservative estimates.  Since fiscal year 1997-1998, the state has spent more than $7 million.

“With a budget deficit of $23.6 billion and concerns over homeland security, one would think that California could find a better way of spending this money rather than bending to the whims of Microsoft’s competitors and continuing the trial long after the federal government and nine other states have settled their case,” continued Schatz.  “With the recent scandal over campaign donations by Oracle to Governor Gray Davis and Attorney General Lockyer, one has to question the true motivation behind this litigation.”

Moreover, according to the letter California sent CAGW, their attorneys spent 996.25 hours on the case in fiscal year 1998-1999, which does not match the information they provided to the court in 2000.  According to court documents, the state spent 4,422.5 hours, and although the court will determine attorney fees, the state claimed that this would normal cost $1.3 million at its standard rates.

“Something does not add up.  Either the state of California is practicing fuzzy math, or they are not being completely open with their accounting,” concluded Schatz.  “California taxpayers have a right to know where and how their money is being spent.  It is time to put an end to this litigation and devote resources to where they are needed most.”

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