Nvidia’s insurance company sues them over bad chips
In a bizarre turn of events, graphics company Nvidia faces legal action by the most unlikely of parties. Its own insurance company doesn’t seem to want to pay up for defective chips in notebooks last year. The National Union Fire Insurance Company (NUFI) of Pittsburgh filed a case in a California district court, calling on the court to make a declaration concerning insurance coverage. The filing says that certain claims asserted by Dell, Toshiba, Apple, Quanta, Compal, Asus, Samsung, Fujitsu-Siemens and others may either bring or have brought claims against Nvidia, alleging that graphic processing units (GPUs) designed and sold by Nvidia and used in notebooks have failed. This issue gives me a chance to post up this flier I saw at NVISION 08 again.
“Concurrently with, or prior to, placing National Union on notice of the chip claims, Nvidia has engaged in settlement negotiations with the chip claimants and, on information and belief, has agreed to settlements and/or the material terms of settlements with respect to some or all of the chip claims,” the filing says. But, complains NUFI: “Nvidia has not permitted National Union to participate in Nvidia’s negotiations of the chip claims or the determination of any settlement or agreements.”
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