AVNT! trading up on this release.
Avant indicted on trade secret theft charges...
By Lisa J Ulmer, CBS MarketWatch
Last Update: 11:03 AM ET Dec 17, 1998
NewsWatch
FREMONT, Calif. (CBS.MW) -- A California criminal grand jury has returned an indictment charging the Avant Corp. and eight individuals with crimes stemming from the long-running copyright infringement dispute with rival Cadence Design Systems, Avant said Thursday.
The indictment is based on Cadence's (CDN)
three-year-old allegations that Avant (AVNT) stole
Cadence's source code for software designed to
speed the design of semiconductors. The Santa
Clara County district attorney began an inquiry into
the matter 18 months ago.
Avant's stock was up 5/16 to 14 7/16 and
Cadence rose 7/8 to 27 1/16.
Avant is charged with conspiracy to commit trade
secret theft, conspiracy to commit securities fraud,
theft of trade secrets, inducing trade secret theft
and committing a fraudulent practice in connection
with the offer or sale of a security.
The indictment named Avant Chairman, President
and Chief Executive Officer Gerald C. Hsu and
employees Stephen Wuu, Y.Z. Liao and Eric
Cheng. If convicted, each defendant could be
sentenced to as many as seven years in prison.
Avant denied all charges in a press release.
Ten days ago, a federal court in San Jose, Calif., blocked Avant from selling its Aquarius software and ruled Cadence's civil lawsuit charging Avant with copyright infringement and trade-secret theft could proceed.
The preliminary injunction prevents Avant from selling, licensing, copying or transferring its Aquarius software product line.
In a press release issued the same day, Hsu said the decision won't stop the sale of any of the company's current products because "Avant stopped selling Aquarius nearly a year ago,'' after the company introduced its Apollo line.
Yet earlier the company expressed concern over an injunction. It warned in its Nov. 20 SEC filing that an injunction blocking Aquarius would "seriously harm Avant's business, financial position and results of operations.''
After news of the criminal indictment, however, Hsu said, "Avant's fundamental strength in the marketplace will not be affected by today's expected events." |
