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 05.05.2008   Trial Court Finds for NVIDIA in 3dfx Bankruptcy Trial
 

SANTA CLARA, CA - MAY 2, 2008 - NVIDIA Corporation (Nasdaq: NVDA) today announced that the United States Bankruptcy Court for the Northern District of California issued its Memorandum Decision After Trial (the "Decision") in the 3dfx bankruptcy action. In the Decision, the Court found in favor of NVIDIA on all issues and rejected the Trustee's attempts to obtain damages from NVIDIA in excess of $100 million. The Trustee's lawsuit arose from NVIDIA's 2001 acquisition of certain assets of its former competitor, 3dfx Interactive, Inc. Specifically, the Trustee claimed that NVIDIA did not pay fair value for the assets it acquired in the transaction, thereby allegedly harming 3dfx's creditors.

"A trial was necessary to fully demonstrate that we conducted ourselves appropriately in the acquisition and we are very pleased with the Decision from the Court. The Decision is comprehensive, thorough, well-reasoned, and a complete rejection of the Trustee's legal and factual arguments," said David Shannon, NVIDIA's senior vice president and general counsel.

The Court expressly found that "the Trustee's valuation theory--every way it is articulated--is simply not credible," and concluded that "the creditors of 3dfx were not injured by the Transaction."

"We will continue to fight this matter through any and all appeals," said Mr. Shannon.





Source: NVIDIA Press Release
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Tags: 3dfx  |  nvidia  |  shareware

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