Rambus Inc. (RMBS) appealed their loss of a $3.95 billion jury trial over their allegations that Micron Technology Inc. and Hynix Semiconductor Inc. had conspired to prevent their memory designs from becoming an industry standard.
The November jury verdict sent Rambus shares down 78% at one point the greatest one day loss since the company?s IPO in 1997. The Jury voted 9-3 to reject Rambus?s claims that Micron and Hynix colluded to manipulate prices of DRAM pricing that placed Rambus devices at a significant price disadvantage and in violation of California antitrust law. Rambus? notice of appeal is dated April 3, 2012.
Comments from Micron and Hynix were not available by press time.
Past and Future Rumblings
What is fascinating about this turn of events is the fact that Intel [Harold?s prior home] and Rambus were tightly married in a contract that demanded a single type source for the memory component of all personal computers – period.
The fact that the company?s DRAM designs were deficit on cost, reliability, shrinks and performance never seemed to faze the company?s oversized legal department – such facts, de-emphasized in trial proceedings, became a matter of standard operating practice as the company transitioned from a technology startup to a technology legal practice.
Rambus announced on February 27, 2012 that Chief Executive Officer Harold Hughes will retire and that he?ll remain at the helm until a successor is appointed.
Prior to this, Rambus Founder Dr. Mark Horowitz resigned from the company?s Board of Directors on December 7, 2011 and take a two-year leave of absence from the company though remain available on a consulting basis to the company.
Dr. Horowitz is the "founding" reason Rambus exists and his resignation for whatever reason does not bode well unless the company has legal reasons that he be an independent entity. The "retirement" of Harold Hughes – according to rumor currents is a direct result of the company?s Micron/Hynix verdict loss.
The company has nothing to lose on their appeal except the appeal itself…,