Advocates of tort reform say the case is a prime example of the need to limit or abolish punitive damages and to discourage the filing of class-action claims.

One employee has established a Web site about employee lawsuits against E.D.S. connected with the layoffs; it lists 57 active cases, including two class-action claims.

"However," he added, "we felt certain that our defense against the class-action claim was strong and compelling."

Mr. Carney said the class-action claims, which he described as "nuisance lawsuits," were no longer an issue, and should have no effect on the proposed merger.

The opposing lawyers will then file and settle class-action claims against the companies resolving the claims of those not yet sick or injured.

Three of the makers of breast implants, hit with hundreds of thousands of lawsuits, agreed in 1992 to the $4 billion settlement to cover all class-action claims.

The proposal would settle lawsuits filed by 39 states and 17 class-action claims against the industry in exchange for billions of dollars in payments in the next 25 years.

In January, Microsoft agreed to pay up to $1.1 billion to California consumers, settling the largest class-action claim.

The news comes only days after another defendant filed a class-action claim against Righthaven for "extortion litigation."

It is considered unlikely that Volkswagen's decision will persuade people to drop their class-action claims.