Analysis Group Client New World TMT Wins $2.8 Billion Default Judgment.LOS ANGELES Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. -- In one of the largest legal victories for a Chinese company in an American court, a Santa Clara Santa Clara, city, Cuba Santa Clara (sän`tä klä`rä), city (1994 est. pop. 217,000), capital of Villa Clara prov., central Cuba. County Superior Court Judge entered a default judgment on behalf of Analysis Group's client, Hong Kong-based New World TMT TMT 1 Tarsometatarsal 2 Thermomechanical treatment 3 Treatment, see there Limited, for compensatory and punitive damages Monetary compensation awarded to an injured party that goes beyond that which is necessary to compensate the individual for losses and that is intended to punish the wrongdoer. totaling $2.8 billion. The judgment was rendered against PrediWave Corporation of Fremont, California, and its CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. and founder, Tony Qu. New World alleged that PrediWave defrauded it of nearly $700 million in connection with its investment in PrediWave as well as its purchases of PrediWave's technology for video-on-demand cable systems, which did not work. The plaintiffs contended that Qu and PrediWave had knowingly engaged in actions aimed at defrauding New World of its investment. Working with attorneys from Paul Hastings, counsel for New World, an Analysis Group case team led by Managing Principal Bruce Strombom provided damages analysis and estimated profits earned by the defendants in transactions involving the sale of memory chips. Dr. Strombom was supported on the case by Vice President Suzanne Heinemann. Dr. Strombom explained "our analysis included a review of content development and marketing efforts by New World to bring one-way video-on-demand to consumers in China. We also used market data on prices of SDRAM (Synchronous DRAM) A type of dynamic RAM (DRAM) memory chip that has been widely used since the late 1990s. SDRAM chips eliminated wait states by dividing the chip into two cell blocks and interleaving data between them. memory chips to estimate the profit earned by a company related to the defendants in the resale of memory chips to New World." The judge accepted Analysis Group's estimate of economic damages of $670 million. This figure represented New World's investment in the PrediWave companies, purchases of video on-demand equipment for the Chinese market, and expenditures by New World to develop and promote the venture. The award also included pre-judgment interest and $2 billion in punitive damages. Analysis Group, Inc. (www.analysisgroup.com) has provided economic, financial, and business strategy consulting to law firms, corporations, and government agencies for more than 25 years. The firm has over 350 professionals, with offices in Boston, Chicago, Dallas, Denver, Los Angeles, Menlo Park, Montreal, New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , San Francisco, and Washington. |
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