Trial Court Finds for NVIDIA in 3dfx Bankruptcy Trial
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FOR IMMEDIATE RELEASE
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.
NVIDIA (Nasdaq: NVDA) is the world leader in visual computing technologies and the inventor of the GPU, a high-performance processor which generates breathtaking, interactive graphics on workstations, personal computers, game consoles, and mobile devices. NVIDIA serves the entertainment and consumer market with its GeForce® products, the professional design and visualization market with its Quadro® products, and the high-performance computing market with its Tesla™ products. NVIDIA is headquartered in Santa Clara, Calif. and has offices throughout Asia, Europe, and the Americas. For more information, visit www.nvidia.com.
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