Insurance company not willing to pay for NVIDIA's faulty chips

Posted on Sunday, May 17 2009 @ 21:17 CEST by Thomas De Maesschalck
TG Daily reports NVIDIA's insurance company isn't willing to pay for the defective notebook chips that plagued the graphics maker last year. In fact, the National Union Fire Insurance Company (NUFI) of Pittsburgh has filed a case in a California district court for breach of contract, claiming it has no obligation to pay millions to NVIDIA:
"Concurrently with, or prior to, placing National Union on notice of the chip claims, Nvidia has engaged in settlement negotiations with the chip claimants and, on information and belief, has agreed to settlements and/or the material terms of settlements with respect to some or all of the chip claims," the filing says.

But, complains NUFI: "Nvidia has not permitted National Union to participate in Nvidia's negotiations of the chip claims or the determination of any settlement or agreements."

NUFI alleges that Nvidia won't tell it about the chip claims, and instead has "flooded National Union with technical data" and provided it with details about the GPUs themselves.

It continues that Nvidia has "cloaked its refusals to provide information under the guise of preserving commercial relationships with the chip claimants." But NUFI says it wants objective, material and non-proprietary information - for example the records of the repairs made.

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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