Lexar says jury orders Toshiba to pay $380 m

Los Angeles/Tokyo, March 24 | Updated: Mar 25 2005, 05:30am hrs
Lexar Media Inc, amaker of memory cards used in computers and digital cameras, on Wednesday said a jury found Toshiba Corp liable for breach of fiduciary duty and theft of trade secrets and awarded Lexar more than $380 million in damages.

The jury in the California State Superior Court in San Jose, also found that Toshibas actions support an award of punitive damages, which are yet to be decided, Lexar said.

Evidence and argument will be presented to the jury on Thursday on the amount of punitive damages, it said in a statement.

A Toshiba spokesman in Tokyo said the company could not comment on the ruling as the jury is still continuing discussions on the case. The verdict holds Toshiba accountable for its conduct building Lexars trust to acquire our technology and then betraying that trust to partner with our competitor and compete against us, Eric Whitaker, Lexars general counsel, said in a statement.

Lexar said it expects the court to rule on its separate claim for unfair competition as well as on anticipated post-trial motions shortly after a hearing currently scheduled for April 13.

Based on the jurys verdict and findings, Lexar said it intends to ask the court for an injunction that bars the sale of Toshibas products in the United States, including Toshibas large and small block NAND flash memory chips, its CompactFlash, Secure Digital and xD Picture Card products.

Reuters