Lexar Media Wins $381 Million Judgment

A California jury finds that Toshiba broke a 1997 development agreement.
By TSC Staff ,

A California jury decided that Toshiba must pay Lexar Media (LEXR) $381.4 million for breaking a flash memory development agreement, according to published reports.

A state court jury in San Jose, Calif., found Wednesday that Toshiba broke a 1997 agreement with Lexar to use and co-develop the technology, then shared it with

SanDisk

(SNDK)

, Lexar's largest competitor, according to

Bloomberg.

"It's disturbing that it took two years and millions of dollars of Lexar's money to get Toshiba to acknowledge what it should have acknowledged years ago," Eric Whitaker, Lexar's general counsel, said in an interview with

Bloomberg

.

Lexar was seeking more than $1 billion in damages and a court injunction stopping the sale of Toshiba products that use Lexar's technology. A separate hearing to determine punitive damages is scheduled for Thursday.

Shares of Fremont, Calif.-based Lexar jumped $1.18, or 37%, to $4.35 after the verdict was announced.

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