Microsoft has agreed to pay a Californian woman $10,000 (£7,500) after an automatic Windows 10 update left her computer unusable.
Teri Goldstein said her Windows 7 computer had automatically tried to update itself to Windows 10 without her permission.
She said the update had made her machine unstable, leaving her unable to use it to run her business.
Microsoft said it had dropped its appeal to save on legal costs.
Microsoft has been aggressively pushing the latest version of its widely used operating system, which is currently available as a free download for computers running Windows 7 and 8.
However, many people have chosen not to upgrade, because they are running old hardware, have software that does not run on Windows 10, are concerned over the software’s tracking features, or simply do not want it.