Facts

Plaintiff Lexar Media Inc. manufactures memory cards and other technology used in computers. Defendant Toshiba Corp. obtained a seat on Lexar's board. Lexar sued Toshiba America Electronics Corp. and its Tokyo-based parent company, alleging theft of trade secrets, breach of fiduciary duty and unfair competition.

PLAINTIFF'S CONTENTIONS:
The plaintiff contended that the defendant obtained its confidential patent applications and began communicating with the plaintiff's rival, SanDisk Corp., after it resigned from the board. Thereafter, the defendant announced it was forming a relationship with SanDisk. Specifically, the plaintiff claimed that the defendant incorporated its trade secrets into its own products.

DEFENDANT'S CONTENTIONS:
The defendant contended that the alleged trade secrets were actually not secrets.

Damages

The plaintiff requested over $1 billion for lost profits and unjust enrichment. The plaintiff also sought punitive damages. The defendant challenged the plaintiff's request for any damages.

Result

$465,400,000; a jury found the defendant liable for breach of fiduciary duty and theft of trade secrets.

Other Information

After the judgment, the plaintiff requested an injunction barring the sale of the defendant's products in the United States. This bar would include any products that incorporated the plaintiff's trade secrets. The Hon. Jack Komar declined the plaintiff's request, but found that the defendant violated the California Business and Professions Code. Judge Komar affirmed the verdict. On December 2, 2005, Judge Komar entered an Order vacating the jury's damages award based on insufficiency of evidence and ordering a new trial on damages.

Deliberation

three days

Length

seven weeks