Thursday, January 11, 2007

Micron to cough up $80 million?

Micron, aka, First Rat To Squeal - in the US DOJ investigation of DRAM price fixing, announced that it has reached a settlement agreement with a class of direct purchasers of certain DRAM products who asserted claims on the heels of the U.S. Department of Justice inquiry into the DRAM industry.

Micron expects a reduction "not to exceed $80 million" of its first quarter fiscal 2007 earnings previously reported on December 21, 2006.

Less painful to announce earnings with smiles all around and then bring out the eraser . . . ah, that is all water under the bridge. For those keeping score, Squealer, reported net income of $192 million for Q1 07.

Caveats: (1) The agreement is subject to approval by the U.S. District Court for the Northern District of California. (2) The Company continues to defend various other cases filed on behalf of purported indirect purchasers of DRAM and on behalf of various states through their Attorneys General.

For a refresher on Squealer's and other Price-Fixer troubles, read an ElectronicNews article with informative links here.

Hat tip to the "blood sucking lawyers" who are squeezing the Price-Fixers.

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