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NEC follows Tosh, Compaq into Texas legal wrangle

Lawyers from the Lone Star State take on IT giants

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NEC has become the third major PC company in less than a week to be sued in Texas. The Japanese chipmaker faces a similar lawsuit to Toshiba, which led to it paying out over $1 billion last week, and Compaq. The same law firm, Texas-based Orgain, Bell & Tucker, has brought the lawsuits against all three vendors. It claims that defective microcontroller chips in floppy disk drives could lead to data being corrupted. NEC saw its share price dive 5.1 per cent to Y1984 yesterday, its lowest closing price since 9 September. About 13 million shares changed hands. NEC said neither it or its US subsidiary Packard Bell had been notified of this latest lawsuit, according to Bloomberg. In the 80s, NEC found a defect in its microcontroller chips for floppy drives, but moved to correct the bug in 1987. The problems had not recurred, the company said. ®

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