NVIDIA 2010 Annual Report Download - page 123

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NVIDIA CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
On December 8, 2009, the District Court appointed Milberg LLP and Kahn Swick & Foti, LLC as co-lead counsel. On January
22, 2010, Plaintiffs filed a Consolidated Amended Class Action Complaint for Violations of the Federal Securities Laws
("Consolidated Complaint"), asserting claims for violations of Section 10(b) of the Securities Exchange Act, Rule 10b-5, and Section
20(a) of the Securities Exchange Act. The Consolidated Complaint seeks unspecified compensatory damages. We filed a motion to
dismiss the Consolidated Complaint. A hearing on this motion is currently scheduled for June 14, 2010.
Intel Corporation
On February 17, 2009, Intel Corporation filed suit against NVIDIA Corporation, seeking declaratory and injunctive relief relating
to a licensing agreement that the parties signed in 2004. The lawsuit was filed in Delaware Chancery Court. Intel seeks an order from
the Court declaring that the license does not extend to certain NVIDIA chipset products, and enjoining NVIDIA from stating that it
has licensing rights for these products. The lawsuit seeks no damages from NVIDIA. If Intel successfully obtains such a court order,
we could be unable to sell our MCP products for use with certain Intel processors and our competitive position would be harmed.
On March 23, 2009, we filed our answer to Intel's complaint and also asserted counterclaims for declaratory relief, injunctive
relief, breach of contract, and breach of the implied covenant of good faith and fair dealing. Our counterclaims seek an order
declaring that NVIDIA has the right to sell certain chipset products with Intel's processors under the 2004 licensing agreement, and
enjoining Intel from interfering with NVIDIA's licensing rights. In addition, the counterclaims seek a finding that Intel has materially
breached its obligations under the 2004 licensing agreement, and requests various remedies for that breach, including termination of
Intel's cross licensing rights. On April 16, 2009, Intel filed its answer to our counterclaims.
Discovery is proceeding and trial is scheduled to commence before Vice Chancellor Strine on August 23, 2010. NVIDIA
disputes Intel’s claims and intends to vigorously defend these claims, as well as pursue its counterclaims.
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Source: NVIDIA CORP, 10-K, March 18, 2010 Powered by Morningstar® Document Research℠