SEOUL (dpa-AFX) - Shares of Rambus Inc. (RMBS) plunged 61 percent on Wednesday on the news that the technology licensing company lost its multi-billion dollar antitrust lawsuit filed against memory chip makers Hynix Semiconductor (000660.KS) and Micron Technology (MU) in 2004.
Rambus stock tanked $10.93 or 60.59 percent to close Wednesday's regular trading session at $7.16, the lowest level in the past three years. Meanwhile, Micron's shares soared $1.28 or 23.44 percent to close at $6.74.
A twelve-member jury deliberated on the case for more than eight weeks after a three-month trial. The jury reached a verdict against Rambus in a 9-3 vote.
Rambus noted that the jury found that it did not meet its burden of proving its case against the two defendants. Boise, Idaho-based Micron said the verdict was reached in its favor on all counts, clearing it of any and all liability.
Meanwhile, Rambus was seeking nearly $4 billion in direct damages as well as punitive damages. Further, the direct damages sought could also have been instantly tripled under California law.
'We are very pleased that the jury considered all the evidence at issue in this case and determined that Rambus' allegations against the Company were completely without merit. The jury's verdict validates our assertion that Micron acted in accordance with the law and consistent with its values of innovation and fair competition in the marketplace,' Micron's Chairman and CEO Steve Appleton said in a statement.
Rambus originally filed the price-fixing case against the defendants in early May 2004 in the Superior Court of the State of California. The trial was presided over by Judge James McBride in California Superior Court in San Francisco.
Sunnyvale, California-based Rambus had alleged that Micron, Icheon, Korea-based Hynix and other memory chip makers conspired to keep Rambus-designed DRAM (RDRAM) chips out of the market by collectively fixing lower prices for their RAMs. The action is said to have led to Rambus losing out on more than $4 billion in profits.
The defendants countered that allegations by providing evidence which indicated design flaws, higher manufacturing costs and other drawbacks as well as Rambus' business practices as the primary reasons for Rambus' product losing market acceptance.
The defendants conspired to eliminate competition and stifle innovation in the market by collectively rigging DRAM prices to drive Rambus' RDRAM memory technology from the market, Rambus said. The defendants also alleged to have raised the prices of DDR by as much as five fold after eliminating RDRAM as a competitor.
'We do not agree with several rulings that affected how this case was presented to the jury and we are reviewing our options for appeal. Regardless of this outcome, we remain steadfastly committed to innovation as Rambus engineers and scientists continue to advance the frontiers of technology for the benefit of our customers and consumers worldwide,' Rambus President and CEO Harold Hughes noted.
Copyright RTT News/dpa-AFX
