"We contend that Palm Inc intentionally and with aforethought released a product that had an amount of SDRAM below industry standards, and intentionally concealed this information from the buying public.
This defect in design caused damages to users in the form of
out of memory errors more frequently than was usual for devices compliant with industry standards, and impeded the performance of the device, causing a higher frequency of errors in Exchange Synchronization, one of the primary functions of the device. Also the device had a more limited ability to
multi-task, another primary feature of the Windows Mobile Operating System.
The defect in design was not immediately obvious to purchasers of the device, and has been consistently concealed in promotional literature and on Palm Inc's website. The presence of a much more limited amount of SDRAM was further intentionally concealed by misleading phrases such as
(128 MB (60 MB RAM) in Palm Inc's promotional literature.
Palm Inc needs to make restitution to buyers who were intentionally mis-sold a product with a significant design flaw. This can be achieved by either replacing the defective devices with an updated design now available with an industry standard amount of SDRAM, offering to refund buyers and free them from any purchase contracts entered into with carriers, or offering an amount in restitution of $200, allowing purchasers to access third party repair of the defect.
In addition we will ask the court for punitive damages in the amount of $30 000 000, to be disimbursed to buyers of Treo 700w handheld devices. This would amount to 10 times the cost savings Palm Inc made by not including $10 of SDRAM in 300 000 Treo 700w devices, and thereby dissuade Palm from similar actions in the future."