|The following is an unedited press release, shown as received from the company represented. We've elected to present selected releases without editorial comment, as a way to provide our readers more information without further overtaxing our limited editorial resources. To avoid any possible confusion or conflict of interest, the Imaging Resource will always clearly distinguish between company-provided press releases and our own editorial views and content.|
Powered by Coranto
PRESS RELEASE: California Jury Orders Toshiba to Pay an Additional $84 Million in Punitive Damages to Lexar Media, Inc.
Total Damages of $465 Million, The Largest IP Verdict in California History
Fremont, CA, March 24, 2005 -- The day after finding Toshiba Corporation (JP:6502) and Toshiba America Electronic Components, Inc. (PNK:TOSBF.PK) liable for $381.4 million in damages for breach of fiduciary duty and theft of trade secrets in Lexar Media, Inc. v. Toshiba Corporation, a San Jose jury awarded Lexar Media, Inc. (Nasdaq:LEXR) an additional $84 million in punitive damages. The total awarded to Lexar in the case now totals $465.4 million, which is believed to be the largest IP verdict in California history and the third largest IP verdict in the United States.
The additional award for punitive damages resulted when the jury found that Toshiba Corporation's actions were oppressive, fraudulent or malicious.
"This verdict sends a clear message that protects all the other companies that don't have the will or means to take on a giant like Toshiba for their fraudulent or abusive business practices. This is a huge victory not just for Lexar, but for innovative companies everywhere," said Eric Whitaker, executive vice president and general counsel, Lexar. "The value of Lexar's inventions has always been and will continue to be at the core of Lexar's business model. Toshiba's main defense attempted to challenge the value of Lexar's IP. The jury's clear reaffirmation of the value of our technology and IP sends a very important signal to our future business partners and licensees."
The trial took place in the Superior Court for the State of California, County of Santa Clara.
Lexar's claim for unfair competition, based on California Business and Professions Code Section 17200 was not given to the jury and will be decided by the Court. Lexar expects that the Court will rule on that claim as well as on anticipated post-trial motions shortly after a hearing currently scheduled for April 13, 2005.
Based on the jury's verdict and findings, Lexar intends to ask the Court for an injunction that bars the sale of Toshiba's products in the United States. Lexar will ask that the injunction include products that have been found to incorporate Lexar's trade secrets, including Toshiba's large and small block NAND flash chips, its CompactFlash, Secure Digital and xD Picture Card products. Though the length of the injunction will be determined by the Court, during the trial, there was testimony that it could take as long as eighteen months to implement the types of features Lexar disclosed to Toshiba. Lexar expects that the Court will hold a hearing on Lexar's request for an injunction on April 13, 2005.
Lexar's case for patent infringement against Toshiba on more than ten of its patents remains pending in the United States District Court for the Northern District of California in San Francisco.
About Lexar Media, Inc.
Lexar is a leading marketer and manufacturer of flash memory cards, USB flash drives, card readers and ATA controller technology for the digital photography, consumer electronics, industrial and communications markets. The company holds over 78 issued or allowed controller and system patents, and licenses its technology to companies including Olympus, Samsung Electronics, SanDisk and Sony. For more information, please call 1-800-789-9418 or visit www.lexar.com.
Cautionary Note Regarding Forward-Looking Statements
This news release contains forward-looking information within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and is subject to the safe harbor created by those sections. These forward-looking statements include assertions regarding our current litigation with Toshiba, including, among others, statements regarding anticipated timing of hearings and decisions by the Court as well as the outcome of the claim construction hearing in our lawsuit against Toshiba for patent infringement. These forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from those anticipated by these forward-looking statements. These risks include: that there is no guarantee regarding the timing and outcome of our current litigation matters, including whether such matters will be resolved in our favor; and that we may become involved in additional litigation that could divert management's time and attention, be time-consuming and expensive to defend and limit our access to important technology. Readers should also refer to the risk factors described in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the fiscal year ended December 31, 2003, filed with the Securities and Exchange Commission on March 15, 2004, and our Quarterly Report on Form 10-Q for its fiscal quarter ended September 30, 2004, filed with the Securities and Exchange Commission on November 9, 2004. We assume no obligation to update the forward-looking information contained in this news release.
(First posted on Friday, March 25, 2005 at 19:07 EST)