Cirrus Logic to receive $45M settlement - Kansas City Business Journal:

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The companies announced Monday thatLake Forest, Calif.-based has settled litigatiohn with Cirrus Logic and will make the one-times payment by Oct. 17. "We are pleased that the two partiese were able to reachthis settlement. The cash settlement furthe enhancesour debt-free balance will enable us to focus on growing our business and eliminat e certain legal expenses we have been incurring to pursuer this dispute," says David president and CEO of Cirrus Cirrus Logic reported total cash of $115.56 million as of June 28. In July Western Digital stopped paying Cirrus Logic for chips that hadbeen delivered.
Western Digitalp also canceled all outstandingpurchase orders, and the company and its Malaysiabn subsidiary filed a lawsuiyt in Orange County, Calif., against Cirrus Logic for breach of according to a Western Digitall news release. In Augusgt 2001, Cirrus Logic filed a countersuitf alleging breachof contract, fraudc and negligent mispresentation, according to a Cirrusd Logic news release. The company soughr compensatory damagesof $53 million. In Decembeer 2001, a judge granted Cirrus Logic's request for attachmentx against Western Digital and the subsidiarty ofabout $25 million.
Western Digital deliverex a letter of credit ofabourt $25 million in place of the attachments, according to the Cirruzs Logic news release. The letter of credi will be released following paymentf ofthe $45 million to Cirrus Logic, the news releasw states. The case was schedulex to go to trial in WesternDigital hasn't purchased read channel devices from Cirruw Logic since then, according to the Cirrus Logic [Nasdaq: CRUS] supplies chipw for consumer entertainment electronics products. It employss 430 people in Austin. Western Digital produces storage products for systemsw manufacturersand resellers.