Remaining States Hiding Expenses

(Washington, D.C.) - As hearings resume today in the remedy phase of the ongoing Microsoft antitrust case, Citizens Against Government Waste (CAGW) unveiled a new analysis of costs being borne by the remaining states in the lawsuit.

"While nine states and the Department of Justice have agreed to settle this matter, nine other states and the District of Columbia continue to prolong the case at taxpayers' expense.  The attorneys general represent the people of the remaining states and should properly inform them of the costs involved in such long-term litigation.  Unfortunately, these states have been less than forthcoming in revealing such information," CAGW President Tom Schatz said. 

In June 1999, CAGW issued Freedom of Information Act (FOIA) requests to the states then involved in the lawsuit and received a minimal response.  In January 2002, CAGW once again issued FOIA requests to the states remaining in litigation, receiving somewhat better results.  As the lead litigant in the ongoing lawsuit, the office of California Attorney General Bill Lockyer informed CAGW on January 24 that they were not required to provide information, but would do so anyway within two weeks.  Six weeks have now gone by without any further information.

In addition to California, the District of Columbia, Iowa, and Massachusetts provided no information, or incomplete information.  Connecticut, Florida, Kansas, Minnesota, Utah, and West Virginia did provide information regarding costs of more than $424,000, along with the hours spent by attorneys on the case.  The information regarding expenditures the states sent to CAGW failed to match the claims provided to the U.S. District Court in June 2000.

"The case will go on for several more months.  At any time during this remedy hearing, any state could agree to the original settlement and avoid further expenditures," continued Schatz.  "It is clear that price tag will not be cheap.  The states have hired Brendan Sullivan as lead counsel, an outside trial lawyer whose firm, Williams & Connolly, has represented the likes of Oliver North and former President Bill Clinton.  With many of these states already facing financial difficulties, this money and the attorneys' general time could be better spent on homeland security and other critical needs."

"These recalcitrant states simply cannot guarantee a victory.  If the settlement between Microsoft and the federal government and the other states is approved, the draconian remedies that the remaining states are seeking may not be approved by Judge Colleen Kollar-Kotelly," Schatz also said.  "In fact, these remedies look like a competitor's dream, which is why they have instigated and lobbied for this litigation – to win in court what they cannot win in the marketplace."

"Taxpayers in the remaining states and DC deserve a clearer answer on how their money is being risked and the motives behind the attorneys' general continued pursuit of Microsoft," Schatz added.  "In one case, Kansas Attorney General Carla Stovall has received as much as $20,000 from Microsoft competitors, who would benefit from continued litigation, in her race for governor."

"CAGW's one million members and supporters, along with all Americans, should be upset that their tax dollars are being risked on prolonged litigation that the majority of them do not even support.  A recent survey released by Americans for Technology Leadership found that 55 percent believe the proposed settlement by the federal government and nine states 'does about the right amount,' while 25 percent think that it 'goes to far,'" Schatz concluded.  "Clearly it is time for this costly litigation to end."

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