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Motorola Chip Division Faces $430-Million Suit

July 02, 1990|from United Press International

LOS ANGELES — Andor International Ltd. has sued Motorola Semiconductor Products Inc., for $430 million on grounds that the Chandler, Ariz.-based company breached a contract to deliver software and computer chips.

The U.S. District Court suit, filed in Los Angeles Friday, alleges fraud and negligent misrepresentation.

In an August, 1988, contract, the suit says, Motorola agreed to provide software and very large-scale integrated circuit chips for a new mainframe computer to Bermuda-based Andor International and its Cupertino, Calif.-based subsidiary, Andor Systems Inc. The computer was to compete with IBM's 3090 model 150, which sells for about $1.7 million.

But, according to the suit, Motorola did not have either the software or the computer chips and repeatedly failed to make scheduled deliveries.

Andor seeks $330 million in damages and $100 million in punitive damages.

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