Gateway Inc., San Diego, CA, has settled a suit against Web America Networks Inc. over allegations it broke an agreement to provide Internet service to Gateway customers.
Terms of the settlement were not disclosed.
Gateway agreed to drop its breach of contract suit, filed in federal court in Delaware last year, after the direct marketer of computers and Web America concluded settlement negotiations Aug. 25, according to news reports.
The reports said Gateway had filed suit after customers complained they couldn’t get easy access to the Internet and e-mail services through Web America’s network. Gateway hired Web America to provide such services, the report said.
Web America officials said that they provided the required Internet services and blamed most of the technical problems on Gateway.
After the lawsuit was filed, Gateway accused Web America programmers of trying to jam Gateway customer service lines with computer-generated phone calls. A judge ordered Web America to stop engaging in the practice, known as “war dialing.”