Avanti to pay $182M restitution to Cadence
By Michael Santarini, EE Times
Jul 19, 2001 (2:56 PM)
URL: eetimes.com
SAN MATEO, Calif. — Avanti Corp. was ordered to pay over $182 million in criminal restitution to Cadence Design Systems Inc. for stealing its place and route code in 1991.
The amount cited by Judge Conrad Rushing in a 19-page decision issued Thursday (July 19) was by some accounts the largest award ever granted in criminal restitution. The award does not include interest that Avanti will have to pay Cadence. Julius Finkelstein, deputy district attorney of Santa Clara County, said the interest will likely make the total award well over $200 million.
Cadence (San Jose, Calif.) and Finkelstein had asked Judge Rushing to order a $700 million award, but Finkelstein said he was nevertheless happy with the decision. In addition to the $182 million restitution payment plus interest, Finkelstein said Avanti had spent roughly $50 million in attorney fees, paid $47 million to settle a securities fraud suite, and paid $35 million in fines for crimes committed.
"This is an unprecedented criminal restitution," said Finkelstein said. "We believe Judge Rushing's decision today will restore the public's confidence in the criminal justice system's ability to handle complex trade secret theft cases. It will send a clear message that trade secret theft does not pay — that crime does not pay."
The restitution amount will apply to any civil litigation Cadence may wish to pursue against Avanti.
Avanti (Fremont, Calif.) could not be reached for comment by press time. Full coverage of the Avanti trade-secrets case can be found online at www.eet.com/avanti.html. |
