Toshiba to pay Lexar $465m in damages

Oct 17, 2005: The judgment has affirmed a previous jury verdict that awarded Lexar Media Inc. $465(US) million in damages in its suit against Toshiba Corp.

Lexar had already claimed victory over Toshiba in March with the jury awarding it $380 million in damages, followed by a further $84 million in punitive damages. After six months filled with numerous motions challenging the verdict and emergency appeals, the judgment is the end of the battle over Toshiba Corporation and Toshiba America Electronics Components' breach of fiduciary duty and theft of trade secrets from Lexar.

"We are very pleased that, after six months of Toshiba's efforts to challenge the jury verdict, the Court has rejected those challenges and entered judgment confirming that verdict in every respect," said Eric Whitaker, executive vice president and general counsel, Lexar. "The jury's verdict was based on a mountain of evidence, mostly from Toshiba's own files, establishing that Toshiba deliberately violated its duties to Lexar and that a large number of the products currently manufactured and sold by Toshiba contain Lexar's trade secrets.

Toshiba is continuing to appeal against the decision however Whitaker added that Lexar is "confident that Toshiba's remaining efforts to challenge the verdict, including its inevitable appeal, will fare no better than Toshiba's earlier attempts."

Now that the judgment is final, the interest accruing on the judgment by day amounts to $127,298(US), or approximately $46 million per year.

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