Basically what happend was that Creative Labs mislead their customers with the interpretation of MP3 player storage capacity, a trick used often in this industry. Evidently they calculated drive capacity in base-10 (1,000,000,000 bytes per GB) instead of base-2 (1,073,741,824 bytes per GB).
The representative plaintiff is entitled to $5,000, and everyone else who bought one of the HDD MP3 players in the past several years gets a 50% discount on a new 1GB player. They can also opt for a 20% discount on anything ordered from Creative's online store. Creative has made available all of the necessary legal forms. Seagate lost a similar lawsuit late last year. It seems that Creative labs is acknowledging and settling a pending class-action law suit inflicting a lot of customers.
Creative reached an agreement settled in the class action suit filed in the US District Court for the Central District of California. In a nut-shell, all of you who have purchased a Creative MP3 player in the US from May 5th 2001 to April 30th 2008, are eligible to either a freebie or a discount on a future purchase.
If you purchased in the United States between May 5, 2001 and April 30, 2008 from a retail store in the United States (including Creative's and others' on-line retail stores) a new Creative brand hard disc drive MP3 player (
Creative Labs Hard Drive MP3 Player Class Action Settlement Info