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Gateway Accused of Fraud Over Net Access

October 17, 2000|Bloomberg News

Gateway Inc. was sued for allegedly advertising free Internet access even though some customers were charged long-distance fees. The proposed class-action consumer suit, filed in San Diego County Superior Court, also claims the company defrauded some consumers by automatically financing their purchases through Gateway's MasterCard plan, which carried a 27% annual rate. Gateway denies the allegations. San Diego-based Gateway shares fell $2.34 to close at $50.77 on the NYSE.

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