Advanced Micro Devices (AMD) announced on Monday that it has settled its flash-memory lawsuit against Alcatel Business Systems, a unit of Paris-based telecommunication equipment maker Alcatel SA.
In April, AMD filed a breach-of-contract suit against Alcatel Business Systems, saying that Alcatel had not honored an agreement signed by the two companies last year, where Alcatel had agreed to purchase and AMD had agreed to supply flash-memory products over a two-year period.
Flash memory is used in devices, including phones, that need to keep data in memory even when the device is turned off. The type of contract AMD and Alcatel had is common in the electronics industry as a way to ensure the supply of products at a price acceptable to consumers, while the seller -- in this case, AMD -- is assured sales from the agreement.
The suit, which was filed in the Supreme Court of the State of New York, has been pending in the U.S. District Court for the Southern District of New York, AMD said in a statement. Terms of the settlement have been sealed as part of the agreement, AMD said.