Micron Losses Deepen With Oracle Settlement

Micron Technology (NASDAQ:MU) has just tacked an additional $58 million onto its second-quarter losses after agreeing to settle a lawsuit with Oracle (NASDAQ:ORCL) over chip prices.

In the suit, Oracle claimed that Micron, the largest U.S. maker of computer memory, had conspired to raise prices for dynamic random access memory from 1998 through 2002. In 2010, Oracle sued Micron for overcharging its recent acquisition, Sun Microsystems. In the claim, Oracle said that the manufacturer ‚Äúconspired to control production capacity, raise prices or slow their decline, allocate customers, and otherwise unlawfully overcharge their DRAM customers.”

The settlement increases Micron’s quarterly loss to $282 million or 29 cents per share. Sales for the quarter ended March 1 were reduced to $2.01 billion from $2.07 billion. Shares of Micron were down over 2 percent to $8.22 during mid-day trading.

To contact the reporter on this story: Gillian White at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com

More from The Cheat Sheet