Amkor Technology Announces Comprehensive Settlement with Tessera
Amkor Technology, Inc. has announced the settlement of its outstanding litigation and arbitration proceedings with Tessera, Inc.
Under the terms of the settlement, Amkor has agreed to pay Tessera a total of $155 million in equal quarterly installments over the next four years, and the parties have agreed to a mutual release and dismissal of all claims relating to their pending litigation and arbitration proceedings, including the previously awarded judgment of $128.3 million plus interest. The settlement agreement also provides that Tessera and Amkor will look for opportunities to engage in potential technology collaboration.
"We are pleased to have reached a comprehensive resolution in this long-running dispute and look forward to exploring technical collaboration with Tessera," said Gil Tily, Amkor's Executive Vice President, Chief Administrative Officer and General Counsel.
Amkor expects to record an after-tax charge to earnings in the fourth quarter of 2014 for most of the total settlement amount, net of amounts previously reserved. Amkor will provide more detail in its upcoming earnings release for the fourth quarter and full year 2014.
