Bankruptcy Court Approves $24M Spansion Settlement with Tessera

  • December 28, 2012

A Delaware bankruptcy court approved a $24 million settlement agreement made on November 29, 2012 between NPE Tessera and Spansion. Tessera previously filed claims against Spansion in California federal court and before the U.S. International Trade Commission alleging that the defendants’ multichip packaging product infringed two patents related to semiconductor packaging technology (5,852,326 and 6,433,419).  In March 2009, Spansion filed for Chapter 11 bankruptcy and underwent reorganization in 2010.  During the course of litigation, and after incurring $8 million in legal fees, Spansion and Tessera reached a settlement agreement related to Tessera’s claims in bankruptcy and patent litigation. Under the terms of the agreement, Tessera will receive 2 million shares of Spansion common stock for a value of $54 million and $200,000 in cash. Spansion will then buy back the claim for $24 million in cash payment. Bankruptcy Judge Kevin J. Carey approved the terms of the settlement agreement on December 5, 2012. The agreement represents a settlement and compromise of all ongoing patent litigation and disputes, including the investigations with the ITC, and also frees up shares of Spansion stock that were earmarked for unsecured creditors arising from a $130 million bankruptcy claim estimate with Tessera. 1:09-bk-10690


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