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On September 24, 2010, Oracle America Inc. ("Oracle"), successor to Sun Microsystems, a DRAM purchaser that opted-
out of a direct purchaser class action suit that was settled, filed suit against us in U.S. District Court for the Northern District of
California. The complaint alleged a conspiracy to increase DRAM prices and other violations of federal and state antitrust and
unfair competition laws based on purported conduct for the period from August 1, 1998 through at least June 15, 2002. Oracle
sought joint and several damages, trebled, as well as restitution, disgorgement, attorneys' fees, costs and injunctive relief. On
March 23, 2012, we entered into a settlement agreement with Oracle pursuant to which we agreed to make a payment of $58
million to Oracle for a settlement and full release of all claims and a dismissal with prejudice of the litigation. The settlement
amount was paid in May 2012.
We are unable to predict the outcome of these matters and therefore cannot estimate the range of possible loss, except as
noted in the U.S. indirect purchasers cases, the Canadian Cases and Oracle matter above. The final resolution of these alleged
violations of antitrust laws could result in significant liability and could have a material adverse effect on our business, results
of operations or financial condition.
Commercial Matters
On January 20, 2011, Dr. Michael Jaffé, administrator for Qimonda AG ("Qimonda") insolvency proceedings, filed suit
against us and Micron Semiconductor B.V., our Netherlands subsidiary, in the District Court of Munich, Civil Chamber. The
complaint seeks to void under Section 133 of the German Insolvency Act a share purchase agreement between us and Qimonda
signed in fall 2008 pursuant to which we purchased all of Qimonda's shares of Inotera Memories, Inc. and seeks an order
requiring us to retransfer the Inotera shares purchased from Qimonda to the Qimonda estate. The complaint also seeks to
terminate under Sections 103 or 133 of the German Insolvency Code a patent cross license between us and Qimonda entered
into at the same time as the share purchase agreement. A three-judge panel will render a decision after a series of hearings with
pleadings, arguments and witnesses. A first hearing was held on September 25, 2012. The next hearing is scheduled for
February 5, 2013. We are unable to predict the outcome of this lawsuit and therefore cannot estimate the range of possible loss.
The final resolution of this lawsuit could result in the loss of the Inotera shares or equivalent monetary damages and the
termination of the patent cross license, which could have a material adverse effect on our business, results of operation or
financial condition. As of August 30, 2012, the Inotera shares purchased from Qimonda had a net carrying value of $177
million.
In the normal course of business, we are a party to a variety of agreements pursuant to which we may be obligated to
indemnify the other party. It is not possible to predict the maximum potential amount of future payments under these types of
agreements due to the conditional nature of our obligations and the unique facts and circumstances involved in each particular
agreement. Historically, our payments under these types of agreements have not had a material adverse effect on our business,
results of operations or financial condition.
Shareholders' Equity
Repurchase of Common Stock
On July 26, 2011, we paid $150 million to repurchase 19.7 million shares of common stock at $7.60 per share.