Sunday, October 5, 2008

ATI, Nvidia to Pay $1.925 Million to Settle Price Fixing Legal Dispute

ATI, graphics products group of Advanced Micro Devices, and Nvidia Corp. recently announced that they agree to pay nearly $2 million in order to settle antitrust legal dispute that concerns price-fixing of graphics cards.

The agreement calls for the ATI and Nvidia to pay $1.7 million ($850 thousand per company) into a fund to be made available for payments to the certified class in exchange for a dismissal of all claims related to the legal action. Under the terms of settlement, plaintiffs who acquired graphics cards graphics cards directly from the websites of ATI or Nvidia in the United States during the period from December 4, 2002 to November 7, 2007, will receive compensations.

The agreement is subject to court approval and, if approved, would dispose of all claims raised by the certified class in the action against ATI and Nvidia.

ATI and Nvidia have also reached a settlement agreement with the remaining individual indirect purchaser plaintiffs in the action. On July 18, 2008, the District Court denied a motion seeking to certify a class of all indirect purchasers in the United States who purchased a product containing a graphics processing unit initially sold by ATI or Nvidia. On September 9, 2008, the companies reached a settlement agreement with the remaining individual indirect purchaser plaintiffs that provides for ATI and Nvidia to pay $225 thousand ($112.5 thousand per company) in exchange for a dismissal of all claims and appeals related to the action raised by the individual indirect purchaser plaintiffs.

ATI and Nvidia were accused of antitrust laws violation and price fixing on graphics processing units in late 2006.

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