Netgear Settles Class Action Wi-Fi Suit

Networking manufacturer NetGear said on Monday that it would add a disclaimer to its packaging, offer a 15 percent discount on its online store, and pay $700,000 in legal fees in order to settle a class-action lawsuit over misrepresentation of the speed of its wireless products. Details of the settlement were made public in a Friday filing with the SEC.

Netgear was sued in California Superior Court in 2004 for allegations that wireless devices sold by the company did not perform as fast as advertised. A similar suit filed in February was later dismissed. While Netgear has admitted no liability, it will add a disclaimer to its boxes indicating that wireless speeds can vary due to a variety of factors.