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Jury Verdict Orders Toshiba to Pay $465M in California Trade Secret Case
A California State Court jury has ordered Toshiba to pay Lexar Media $381M for breach of fiduciary duty and theft of trade secrets and an additional $84M on the issue of punitive damages. Lexar Media is a memory card maker for computers and digital cameras. A further ruling on a separate claim for unfair competition is expected. This matter will be decided by the Court and not a jury according to the plaintiff. Lexar Media states the total award is believed to be the largest IP-related award in California history and the third largest verdict in the U.S. Lexar Media has stated it will seek an injunction to block the sale of Toshiba's products related to flash chips (CompactFlash, Secure Digital and xD Picture Card) incorporating large and small block NAND technology. Lexar Media alleges that its trade secrets were misappropriated by a Toshiba executive who sat on Lexar Media's board. Toshiba then partnered with a Lexar Media competitor. A patent suit on 10 of Lexar Media's patents remains pending against Toshiba in U.S. Federal Court.
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