Nvidia finally fends off 3dfx charges

 

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By Stuart Turton

Posted on 7 May 2008 at 08:53

Nvidia has finally put to rest bankruptcy allegations regarding its acquistion of 3dfx in 2001.

Nvidia bought the fallen graphics giant for around $112 million, a price which caused outrage among the company's creditors which believed Nvidia had underpaid for 3dfx's assets. One of those creditors promptly sued Nvidia for $100 million.

The United States Bankruptcy Court for the Northern District of California, however, found in favour of Nvidia, describing the creditor's valuation as "simply not credible", before dismissing the case. The case is now likely to go on to appeal, but Nvidia hopes the ruling will put claims it underpaid for 3dfx to bed.

"A trial was necessary to fully demonstrate that we conducted ourselves appropriately in the acquisition and we are very pleased with the decision from the court," says David Shannon, Nvidia's senior vice president and general counsel.

"The decision is comprehensive, thorough, well-reasoned, and a complete rejection of the Trustee's legal and factual arguments. The creditors of 3dfx were not injured by the transaction. We will continue to fight this matter through any and all appeals," he adds.

Many gamers still remember 3dfx with affection, and back in the 1990s it was still the graphics company to beat - catering to the high end gaming market with its Voodoo cards. However, many believe this focus on the niche enthusiast market, coupled with its long turn around between products left it vulnerable during a market slowdown, ultimately leading to its downfall.