SimpleTech Files Lawsuit for Unfair Trade Practices Against Lexar Media; Causes of Action Include Libel, Interference with Business Opportunities and Unfair Competition.Business Editors & High-Tech Writers SANTA ANA, Calif.--(BUSINESS WIRE)--Oct. 1, 2002 SimpleTech, Inc. (Nasdaq:STEC STEC shiga toxin-producing Escherichia coli. ), a leading manufacturer of flash-based data storage and custom and standard memory solutions, today announced that it has filed suit in California Superior Court against Lexar Media, Inc. (Nasdaq:LEXR). Trade libel, libel per se libel per se n. broadcast or written publication of a false statement about another which accuses him/her of a crime, immoral acts, inability to perform his/her profession, having a loathsome disease (like syphilis), or dishonesty in business. , interference with business opportunities, violation of the California Unfair Competition Act, and violation of the California Unfair Trade Practices Act are the causes of action listed in the complaint. "This suit has been filed in response to our findings that Lexar Media, in order to gain a bigger share of the pertinent market, has been making malicious and false accusations against SimpleTech to our customers," said Houman Fakhimi, general counsel to SimpleTech. "We are taking this action now after several failed attempts to get Lexar Media to retract TO RETRACT. To withdraw a proposition or offer before it has been accepted. 2. This the party making it has a right to do is long as it has not been accepted; for no principle of law or equity can, under these circumstances, require him to persevere in it. the statements they made to our customers. SimpleTech values the relationships it has with its customers and will vigorously prosecute this lawsuit to insure that our customers are not misled by the Lexar accusations." SimpleTech is seeking treble 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. in the suit. In a separate action, today SimpleTech expects to file a complaint with the FTC FTC See Federal Trade Commission (FTC). (Federal Trade Commission) urging the agency to investigate Lexar Media's unfair trade practices. About SimpleTech SimpleTech, Inc. is a technology solutions provider offering products based on DRAM, SRAM See static RAM. SRAM - static random-access memory and Flash memory technologies. Headquartered in Santa Ana, Calif., the company is a leader in the design, development, manufacturing and marketing of custom and standard memory solutions. For information, please contact the company's Investor Relations Investor relations The process by which the corporation communicates with its investors. department or visit www.simpletech.com. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statement This press release contains certain forward-looking statements that involve risks and uncertainties. The outcome of the litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. between SimpleTech, Inc. and Lexar Media, Inc. is uncertain and results could vary from those predicted. The lawsuit is in the early stages. Accordingly, SimpleTech's expenses and other resources expended on this lawsuit have been immaterial to date. As this lawsuit progresses, SimpleTech expects to incur greater legal fees and expenses. In addition, SimpleTech's prosecution of this lawsuit is expected to divert the efforts and attention of its key management. As a result, this lawsuit, regardless of its eventual outcome, will likely be costly and time consuming. Important factors which could cause actual factors to differ materially from those in the forward-looking statements are detailed under "Risk Factors" in filings with the Securities and Exchange Commission made from time to time by SimpleTech, including its Annual Report on Form 10-K, quarterly reports on Form 10-Q. and current reports on Form 8-K. Other factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements include the risk that SimpleTech's customers could alter their purchasing patterns as a result of this lawsuit. SimpleTech undertakes no obligation to release publicly any revisions to any forward-looking statements to reflect events or circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. |
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