Crucial 2013 Annual Report Download - page 85

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84
Securities Matters
On July 12, 2013, seven former shareholders of Elpida Memory, Inc. (“Elpida”) filed a complaint against Messrs.
Sakamoto, Adachi, Gomi, Shirai, Tsay-Jiu, Wataki, Kinoshita, and Takahasi in their capacity as members of the board of
directors of Elpida as of February 2013. The complaint alleges that the defendants engaged in various acts and
misrepresentations to hide the financial condition of Elpida and deceive shareholders prior to Elpida filing a petition for
corporate reorganization on February 27, 2013. The plaintiffs seek joint and several damages equal to the market value of
shares owned by each of the plaintiffs on February 23, 2013, along with attorneys’ fees and interest. At a hearing on September
25, 2013, the plaintiffs withdrew the complaint against Mr. Tsay-Jiu.
We are unable to predict the outcome of this matter and therefore cannot estimate the range of possible loss. The final
resolution of this matter 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. Hearings were held on September 25, 2012, February 5, 2013, June 11, 2013 and July 2,
2013. An additional hearing is scheduled for November 12, 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 29, 2013, the Inotera shares purchased from
Qimonda had a carrying value of $190 million.
Other
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.