Summary
NVIDIA Corporation (NVDA) disclosed in an 8-K filing on September 24, 2008, that it has executed settlement agreements to resolve antitrust litigation related to graphics processing units (GPUs). The company reached a settlement with direct purchaser plaintiffs for $850,000, contributing to a larger $1.7 million fund. This settlement covers purchases made directly from NVIDIA or ATI Technologies during a specific period in the United States. Additionally, NVIDIA settled with remaining individual indirect purchaser plaintiffs for $112,500. This latter settlement resolves all claims and appeals from these parties and is not subject to court approval. These agreements are significant as they aim to conclude the consolidated 'In re Graphics Processing Units Antitrust Litigation,' mitigating potential further legal costs and uncertainties for the company.
Key Highlights
- 1NVIDIA reached a settlement agreement concerning the consolidated 'In re Graphics Processing Units Antitrust Litigation' (MDL No. 1826).
- 2The company will pay $850,000 as its contribution to a $1.7 million fund for direct purchaser plaintiffs.
- 3The direct purchaser settlement covers purchasers who bought graphics cards directly from NVIDIA or ATI Technologies websites in the U.S. between December 4, 2002, and November 7, 2007.
- 4NVIDIA also settled with remaining individual indirect purchaser plaintiffs for $112,500.
- 5The settlement with indirect purchasers resolves all their claims and appeals related to the litigation.
- 6The indirect purchaser settlement is not subject to court approval.
- 7These settlements are intended to dispose of all claims and appeals raised by the certified class of direct purchasers and the individual indirect purchasers against NVIDIA in the Action.