Santa Clara County Superior Court Awarded C2 Microsystems, Inc. $133,300 In Attorneys' Fees And Costs For Its Successful Defense Of A $10 Million Dollar Action Brought By DVS, Inc. Against C2 Microsystems, Inc. And Edmund Sun

On November 23, 2009, the Santa Clara County Superior Court awarded C2 Microsystems, Inc. $133,300 in attorneys’ fees and costs for its successful defense of a $10 million dollar action brought by DVS, Inc. against C2 Microsystems, Inc. and Edmund Sun, the former CEO of both companies. Earlier this year, following a two week jury trial, the Court granted C2 Microsystems’ motion for nonsuit. The case concerned allegations of fraud regarding the value of technology that was transferred from DVS to C2 Microsystems in 2004. The Court granted the nonsuit on the grounds that, as a matter of law, DVS failed to meet its burden of showing that a majority of the DVS Board of Directors relied on any alleged misrepresentations by Mr. Sun. The attorneys’ fees and costs were awarded for C2 Microsystems’ successful defense of DVS’ claim of breach of the covenant of good faith and fair dealing. The case is currently on appeal.