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Nvidia Settles Chip Lawsuit


Frequent readers of this blog will recall that Nvidia had some “problematic” GPU chipsets which lead to a lawsuit or two. Today Nvidia settled some of that litigation according to

In response to the settlement dated August 12, 2010, Nvidia issued this statement today. “We can confirm that Nvidia has settled litigation concerning a weak die/packaging material set in certain versions of our previous generation MCP (media and communication processor) and GPU products used in notebook configurations. Notice of this settlement has been sent to potentially affected eligible customers. Claims are being processed through a third party administrator who is working directly with our customers. Consumers who believe they are affected and wish to file a claim should read the notice and follow the instructions that it sets out. As previously announced, our second-quarter financial results reflected costs associated with this settlement.”

Okay. But here’s where things get interesting:

However, starting on page 24 of the settlement, Nvidia also stated that it “has denied, and continues to deny, all allegations of wrongdoing or liability” related to the claims. And it goes on to say that it is settling “solely because it will eliminate the burden, expense, management distraction and uncertainties of further litigation and the concomitant distraction of resources and efforts from their business.”

So this could be one of those “pay to make our legal problems go away” deals or it could be a “pay to cover up our shortcomings” deals. Either way, if you’ve got one of 50 models of Dell, HP or Apple computers, some cash could be coming your way. 

You can read the PDF with the full details here.
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