Toshiba Corp. has reached a settlement with personal computer users in the United States over a flaw in its notebook computers, Japan's leading computer maker announced Friday.

The compromise will cost Toshiba, the leading notebook PC maker in the U.S., about 110 billion yen ($1 billion), Toshiba officials said.

In March, two American users of Toshiba PCs filed a lawsuit claiming that a defective integrated circuit in the computers' floppy disk controllers had the potential to destroy data.