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Commitments and Contingencies
6 Months Ended
Jun. 30, 2018
Commitments and Contingencies  
Commitments and Contingencies

 

8.  Commitments and Contingencies

 

Securities Litigation

 

On March 15, 2018, a purported class action lawsuit was filed by Ann Noyes on behalf of the stockholders of Sigma Designs, Inc. in the United States District Court in the Northern District of California against Sigma Designs, certain current and former Sigma Designs board members and the Company (collectively, the “Defendants”). The lawsuit alleged violations of Section 14(a) and 20(a) of the Securities Exchange Act of 1934 and SEC Rule 14a-9 arising out of Sigma Designs’ attempt to sell its Z-Wave business to the Company. The lawsuit claimed that the Defendants filed a materially incomplete and misleading preliminary proxy statement in connection with the proposed sale of the Z-Wave business. The lawsuit was voluntarily dismissed on May 17, 2018.

 

Patent LitigationCresta Technology

 

On January 28, 2014, Cresta Technology Corporation (“Cresta Technology”), a Delaware corporation, filed a lawsuit against the Company (among others) in the United States District Court in the District of Delaware, alleging infringement of three United States Patents (the “Cresta Patents”). Cresta Technology declared bankruptcy in 2016. The U.S. District Court approved the plaintiff’s voluntary dismissal of the Delaware lawsuit on April 3, 2018.

 

On July 16, 2014, the Company filed a lawsuit against Cresta Technology in the United States District Court in the Northern District of California alleging infringement of six United States Patents.  The Northern District of California lawsuit is currently stayed. At this time, the Company cannot predict the outcome of this matter or the resulting financial impact to it, if any.

 

Patent LitigationBandspeed

 

On June 21, 2018, Bandspeed, LLC (“Bandspeed”), a Texas limited liability company, filed a lawsuit against the Company in the United States District Court of the Western District of Texas, Austin Division, alleging infringement of eight United States Patents.  The Company is reviewing the Bandspeed complaint and intends to defend the matter vigorously.  At this time, the Company cannot predict the outcome of the Bandspeed matter or the resulting financial impact to it, if any.

 

Other

 

The Company is involved in various other legal proceedings that have arisen in the normal course of business. While the ultimate results of these matters cannot be predicted with certainty, the Company does not expect them to have a material adverse effect on its Consolidated Financial Statements.