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VideoLogic Group PLC reported today that the company has been named, by amendment, as an additional defendant in the widely reported lawsuit, brought by 3Dfx Interactive, Inc. against Sega and NEC Corporation. 3Dfx is a US based company which recently completed its initial public offering of stock to the general public on June 25 1997.
3Dfx claims that they entered into a development agreement with Sega to develop a 3D graphics accelerator for Sega's forthcoming game console. In the lawsuit 3Dfx alleges that NEC and VideoLogic: - Induced Sega to breach its agreement with 3Dfx. - Caused through their actions Sega to switch to NEC and VideoLogic as the provider of 3D graphics technology for its forthcoming game console. - Interfered with the agreement so it could obtain benefits originally intended to flow to 3Dfx. - Engaged in unfair competition - May have misappropriated 3Dfx trade secrets 3Dfx claims damages against NEC and VideoLogic in aggregate of $105 Million US Dollars. The basis for the calculation of these sums is unspecified. The directors of VideoLogic Group PLC believe these claims are entirely baseless and without merit. The company will defend the action alongside Sega and NEC. Sega has publicly denied and refuted claims by 3Dfx, and intends to aggressively defend the action. NEC intends to defend the action and has given assurance to VideoLogic that it is fully committed to support VideoLogic in its defense of this action. The directors believe that any financial consequences arising out of this action will not be material. VideoLogic will not comment further on this lawsuit at this time.
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