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The revised settlement requires Judge Seeborg's approval.
The revised settlement will give each investor an average of more than $700,000.
"The judge did expressly leave the door open for a revised settlement," he said.
But the court rejected the revised settlement in 2011, and the legal controversy continues.
The revised settlement, filed Saturday and first reported by Reuters Monday, offers to split the $20 million differently.
Under the complex terms of the revised settlement, some 60 investors who chose not to join can come back in.
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Estimates of possible revised settlements push Microsoft's total penalty into the $2 billion-plus range.
Germany agreed in 1924 to a revised reparations settlement, the Dawes Plan, and the French occupation forces were withdrawn.
Microsoft and the plaintiffs' lawyers revised the settlement to provide for court appointment of the foundation's board to remove any perception that the organization would be "under control of Microsoft," said David Tulchin, a lawyer for Microsoft.
The fact that the group's tax structure has been subject to fierce attack from critics in both Washington and Brussels shows that there are several parties who feel they are entitled to spoils from any revised tax settlement.
Charles Schwab says it has reached a revised $235 million settlement of a lawsuit that accused the discount brokerage of misleading customers about the risks of a bond mutual fund that plunged in value.
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