In light of the recent proposed settlement of a class-action suit, Palm has announced that it will be pulling the plug on 34 retail locations in the US. Eight Palm-branded stores and 26 airport kiosks will be closed down as Palm prepares to begin issuing pay-outs. The class-action suit filed in 2005 was just settled at no small cost the the mobile manufacturer, and the final hearing is scheduled for May 2 of this year. In accordance with the proposed settlement, Palm will be required to issue a $75 reimbursement to Treo 600 owners who purchased a new smartphone between September 30, 2005 and six months after the pending settlement is finalized. In addition, those who purchased a Treo 650 will be eligible for a $50 rebate on any new Palm smartphone purchased within six months of settlement finalization. The class-action suit was filed as a result of defective handsets and any customer who had a US-purchased handset requiring two or more repairs or replacements is eligible for compensation. Note that if you intend to make a claim as a result of the class-action settlement, your submission to Palm must be post marked no later than July 28th, 2008. Also, free out-of-warranty repairs will only be covered up to 120 days from the settlement finalization. Go here for further details on eligibility and instructions on how to file a claim once the settlement goes into effect.