Jury Awards Lexar in Suit With Toshiba
By Greg Scoblete -- TWICE, 3/24/2005
Santa Clara, Calif. — Lexar announced on March 24 that a jury has awarded it over $465 million in its case against Toshiba. Lexar is also seeking an injunction to block the sale of several Toshiba flash memory cards in the United States.
In the case before the Superior Court for the State of California, the jury found Toshiba Corporation and Toshiba America Electronic Components (TAEC) liable of breach of fiduciary duty and theft of trade secrets, and awarded Lexar over $381.5 million in damages. An additional $84 million in punitive damages was also awarded.
Lexar’s injunction would bar sales of Toshiba’s large and small block NAND flash chips, and CompactFlash, Secure Digital and xD memory cards. The length of the injunction will be determined by the Court in a hearing that Lexar expects to be held on April 13.
According to Lexar, since the jury also found that Toshiba’s and TAEC’s actions were “oppressive, fraudulent or malicious,” additional punitive damages could be awarded. Evidence and argument will be presented to the jury tomorrow on the amount of punitive damages.
Lexar is also engaged in a patent infringement against Toshiba in Federal Court, which is currently in the discovery phase.
Toshiba issued a statement noting that it would not comment on the verdict as “litigation is still ongoing.”
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