SANTA CLARA, Calif. (AP) - Graphic chip supplier Nvidia Corp. said Friday that a federal bankruptcy court has rejected a $100 million claim that it unfairly obtained the assets of former competitor 3dfx Interactive Inc.
The court rejected a petition by William A. Brandt, the Chapter 11 trustee of 3dfx, which claimed that Nvidia did not pay fair value for the assets in the 2001 deal and thereby harmed 3dfx's creditors.
3dfx filed a Chapter 11 bankruptcy petition October 2002 in the San Jose division of the U.S. Bankruptcy Court for the Northern District of California. Brandt filed the lawsuit against Nvidia in February 2003.
Nvidia's general counsel David Shannon said Friday that a trial was necessary to fully demonstrate that Nvidia conducted itself appropriately.
The company's shares rose $1.02 or 4.7 percent to close at $22.52.
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