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Nvidia settles Bumpgate class action lawsuit

Offers a wad of cash and new chips
Fri Oct 01 2010, 12:31

GPU DESIGNER Nvidia has reached a settlement in the class action lawsuit that was brought against it by owners of laptops affected by Bumpgate.

The dodgy engineering in a number of the firm's mobile Geforce processors resulted in Nvidia forking out $200 million to replace chips all over the world. Now it has reached a settlement in a class action lawsuit brought by owners of laptops that were brought down by Bumpgate chips. This chould mean more financial pain for the Green Goblin, given that Bumpgate affected just about all of the largest laptop manufacturers including Dell, HP and Apple.

Nvidia and the plaintiffs reached a settlement on 12 August, when the firm said, "Nvidia has denied, and continues to deny, all allegations of wrongdoing or liability whatsoever" and is only agreeing to the settlement "solely because it will eliminate burden, expense, management distraction and uncertainties of further litigation."

What it has agreed to do is pay $13 million for the plaintiffs' legal fees, deposit $2 million into a reimbursement fund in an interest bearing bank account, and undertake a programme of chip replacement remedy, or basically replace any faulty GPUs.

The $2 million fund is available to those who have experienced one or more of the "identified failures".

Although the financial aspect of this settlement is hardly threatening to the survival of Nvidia, its reputation has been severely tarnished and that will cost far more than the $215 million that it has forked out.

That figure doesn't include future bills it can expect to face from OEMs as they continue to replace GPU cards and laptops affected by Bumpgate. Nvidia might continue to get hefty invoices in the post over Bumpgate for a while. µ


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