The 7-year-old case is one of the last of a spate of antitrust suits filed against Microsoft in state courts in the wake of the DOJ's federal suit to be resolved. A lawsuit in Mississippi is the only other one still scheduled to go to trial.

"We are confident that the settlement is in the best interests of all members of the class, and we are deeply grateful for the quality and fairness of the judicial process in Iowa," said Roxanne Conlin, lead counsel for the plaintiffs, as part of a joint statement with Microsoft.

Under the settlement, unspecified compensation will be paid to individuals and businesses in Iowa who bought Windows and specified other Microsoft products, including Word, Excel and Office, between May 1994 and last June. Details on how to file claims will be announced in the spring, according to the joint statement.

Half of any unclaimed proceeds will go to the Iowa Department of Education to fund purchases of computer hardware and software for schools in the state. "One of the best aspects of resolving this case is that we can provide much-needed resources to underprivileged schools," said Rich Wallis, Microsoft's associate general counsel. "We're happy to have this matter behind us so we can focus on the future and build the next generation of products and innovations that enrich the lives of people around the world."