I thought that SYNA dropped as much as it did for the past few days on the downgrade from Andy Neff (BS) and John Wagonfield (First Albany). I do see these downgrades as fresh news items this morning, but these cr***ks are rehashing the same story. I believe that we are at the end of selling on SYNA and it would turn around soon enough. The darn management hasn't yet opened their 'gob' and thus indirectly admitting to the loss of (or impending loss of) AAPL contract. I plan to double up today as well.
Trial Begins in Lexar Media, Inc. v. Toshiba Corporation Thursday February 10, 6:00 am ET
FREMONT, Calif.--(BUSINESS WIRE)--Feb. 10, 2005--In opening arguments heard yesterday in Lexar Media, Inc. v. Toshiba Corporation, attorneys for Lexar Media, Inc. (Nasdaq:LEXR - News) presented evidence that they plan to present during the ongoing trial. Lexar's lawsuit against Toshiba for breach of fiduciary duty, misappropriation of trade secrets and unfair competition is being heard in the Superior Court for the State of California, County of Santa Clara. Lexar is a leading marketer and manufacturer of high-performance digital media and accessories. In its opening statement, Lexar indicated that it would present evidence proving the following:
By 1997, Toshiba had tried but failed to develop a reliable flash memory controller. In 1997, Toshiba invested in Lexar because, according to Toshiba documents, Lexar had "technology and product roadmap (which were) superior to any other available solution" and Toshiba was "losing business because of the lack of controllers" and recognized that the "controller is key to market creation."
Evidence shows that Toshiba approached Lexar representing itself as Lexar's "best and strategic partner" and "key collaborator." In May 1997, Toshiba invested $3 million in Lexar and asked for and received a seat on Lexar's board of directors.
As a strategic partner, owner, and board member of Lexar, Toshiba received extensive Lexar confidential information including Lexar's highly confidential patent applications. Unbeknownst to Lexar, around the time of Toshiba's investment in Lexar, Toshiba's top management, led by Mr. Fujii, had "top secret" internal plans to partner with SanDisk and to "share strategy of maintaining suitable profit and expanding the flash market" with SanDisk.
When asked why Toshiba would invest in Lexar given its decision to work with SanDisk, Mr. Fujii testified that the investment in Lexar was "cheap insurance" for Toshiba. Toshiba's internal documents show that the actual purpose of Toshiba's investment in Lexar was to "corral Lexar" so that it could "effectively use engineers having system engineering strength and system support strength."
While a member of Lexar's board, Toshiba's board representative, Mr. Ito, channeled Lexar's confidential business information and even attorney/client privileged documents to Mr. Fujii who was negotiating with SanDisk. Mr. Fujii testified that he had "no idea" why he received such information.
Toshiba's representative, Mr. Ito, remained on Lexar's board despite acknowledging this conflict of interest to Toshiba. He later agreed to resign his board seat but only on the condition that "Toshiba shall receive copies of all documents distributed at Board Meetings plus ... a statement that Toshiba shall receive copies of Lexar weekly reports." Toshiba and SanDisk later announced a joint venture to manufacture NAND flash memory; it later turned out that these chips incorporated Lexar's confidential technology.
From time to time, Lexar expects to post updates of the trial on its corporate website at www.lexar.com/litigation.
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