NVIDIA found not guilty in 3dfx bankruptcy trial

Posted on Tuesday, May 06 2008 @ 00:16 CEST by Thomas De Maesschalck
Everything moves so fast in the tech world that it sounds pretty amazing that there was still a trial regarding 3dfx's bankruptcy:
NVIDIA Corporation (Nasdaq: NVDA) today announced that the United States Bankruptcy Court for the Northern District of California issued its Memorandum Decision After Trial (the "Decision") in the 3dfx bankruptcy action. In the Decision, the Court found in favor of NVIDIA on all issues and rejected the Trustee's attempts to obtain damages from NVIDIA in excess of $100 million. The Trustee's lawsuit arose from NVIDIA's 2001 acquisition of certain assets of its former competitor, 3dfx Interactive, Inc. Specifically, the Trustee claimed that NVIDIA did not pay fair value for the assets it acquired in the transaction, thereby allegedly harming 3dfx's creditors.

"A trial was necessary to fully demonstrate that we conducted ourselves appropriately in the acquisition and we are very pleased with the Decision from the Court. The Decision is comprehensive, thorough, well-reasoned, and a complete rejection of the Trustee's legal and factual arguments," said David Shannon, NVIDIA's senior vice president and general counsel.

The Court expressly found that "the Trustee's valuation theory--every way it is articulated--is simply not credible," and concluded that "the creditors of 3dfx were not injured by the Transaction."

"We will continue to fight this matter through any and all appeals," said Mr. Shannon.


About the Author

Thomas De Maesschalck

Thomas has been messing with computer since early childhood and firmly believes the Internet is the best thing since sliced bread. Enjoys playing with new tech, is fascinated by science, and passionate about financial markets. When not behind a computer, he can be found with running shoes on or lifting heavy weights in the weight room.



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