Jun 4, 2001SAN DIEGO
Qualcomm products mentioned within this press release are offered by Qualcomm Technologies, Inc. and/or its subsidiaries.
SAN DIEGO -- June 4, 2001 -- Qualcomm Incorporated (Nasdaq: QCOM), today announced favorable decisions in three cases that had been brought by former employees claiming rights to unearned Qualcomm stock options. In the Hanig v. Qualcomm case, the California Superior Court granted summary judgment in Qualcomm's favor on all of plaintiffs' claims on the grounds that the releases and agreements not to sue executed by each of the plaintiffs barred their lawsuit. The plaintiffs had signed the releases in exchange for the right to participate in a bonus retention plan under which Qualcomm paid millions of dollars to its former workers who became employees of Ericsson when Qualcomm sold its infrastructure equipment business. The case was filed by 69 of those former employees.
In addition, Qualcomm announced that the plaintiffs in the May v. Qualcomm case have agreed to dismiss with prejudice their purported class action lawsuit against Qualcomm and Qualcomm Personal Electronics, in which several claims seeking compensation for stock options and bonus payments had been alleged by a separate group of former employees. The plaintiffs agreed to dismiss their claims after the court granted Qualcomm's motion dismiss their second amended complaint.
Finally, Qualcomm announced that the United States District Court for the Southern District of California had granted summary judgment on seventeen of eighteen causes of action in a purported class action lawsuit arising out of the reduction in force which occurred at the Company in February of 1999. In that case, the purported class representatives had each sought vesting of stock options after the termination of their employment, even though each had executed releases of claims in exchange for generous severance payments offered as part of the separation package. In granting judgment in Qualcomm's favor on those claims, the Court upheld the validity of those releases.
"We are pleased that the Company has been completely vindicated in the Hanig and May cases and that virtually all of the claims in the third case have been summarily dismissed," said Louis M. Lupin, senior vice president and general counsel for Qualcomm. "Qualcomm works very hard to ensure that our employees are treated not only lawfully, but fairly, and has consistently gone far beyond what the Company was legally required to do in providing for our employees and our former employees. Consequently, it is very disappointing when frivolous claims such as the ones raised in these cases are made but gratifying when their lack of merit is recognized. We will continue to vigorously defend against meritless claims such as these."
Qualcomm Incorporated (www.qualcomm.com) is a leader in developing and delivering innovative digital wireless communications products and services based on the Company's CDMA digital technology. The Company's business areas include CDMA integrated circuits and system software; technology licensing; the Binary Runtime Environment for Wireless™ (BREW™) applications platform; Eudora® e-mail software; digital cinema systems; and satellite based systems including portions of the Globalstar™ system and wireless fleet management systems, OmniTRACS and OmniExpress. Qualcomm owns patents that are essential to all of the CDMA wireless telecommunications standards that have been adopted or proposed for adoption by standards-setting bodies worldwide. Qualcomm has licensed its essential CDMA patent portfolio to more than 100 telecommunications equipment manufacturers worldwide. Headquartered in San Diego, Calif., Qualcomm is included in theS&P500 Index and is a 2001 FORTUNE 500® company traded on The Nasdaq Stock Market® under the ticker symbol QCOM.
Except for the historical information contained herein, this news release contains forward-looking statements that are subject to risks and uncertainties, including the Company's ability to successfully design and have manufactured significant quantities of CDMA components on a timely and profitable basis, the extent and speed to which CDMA is deployed, change in economic conditions of the various markets the Company serves, as well as the other risks detailed from time to time in the Company's SEC reports, including the report on Form 10-K for the year ended September 24, 2000, and most recent Form 10-Q.