LEGAL PROCEEDINGS	6 Months Ended
Sep. 30, 2012
LEGAL PROCEEDINGS	NOTE 15. LEGAL PROCEEDINGS On August 2, 2011, a lawsuit was filed in the Superior Court of California in the County of Santa Clara by Mission West Properties, L.P. (“Mission West”), the lessor for the Hillview Facility naming us as a defendant (Santa Clara County Superior Court case No. 1-11-CV-206456). The lawsuit asserts various monetary and equitable claims, but essentially seeks recovery of remediation and restoration costs in the amount of $3.0 million, which we assert are inflated and unsubstantiated. We also dispute liability in connection with claims by Mission West regarding the extent of restoration mandated by the lease. Mission West sought leave to amend its Complaint to assert additional claims arising from Mission West’s purchase of the Hillview Facility. On July 30, 2012, Court denied the motion to amend without prejudice. Mission West re-filed its motion, seeking leave to plead new claims for promissory fraud, intentional and negligent misrepresentation, and concealment against Exar. We opposed the motion; a hearing was held on October 11, 2012. The Court ruled on October 17, 2012 that Mission West could amend its Complaint to assert the new claims against us. We previously filed an Amended Cross-Complaint against Mission West on November 21, 2011 for the following Causes of Action: (1) Promissory Fraud; (2) Breach of the Covenant of Good Faith and Fair Dealing; (3) Contract Reformation; and (4) for Deposit in Court. The Cross-Complaint also asserts the following causes of action against our former subtenant, Kovio, Inc.: (1) Declaratory Relief and Indemnity; (2) Breach of Contract; and (3) for Deposit in Court. Responsive pleadings have been filed by the Cross-Defendants. In June 2011, we dismissed the cause of action for Deposit in Court against both Cross-Defendants. Discovery, including depositions of key witnesses in the lawsuit, has begun but was informally stayed through mid-October pending resolution of Mission West’s motion to amend. It is expected that discovery, primarily in the form of depositions, will now proceed. An accrual of $1.2 million has been recorded as the estimated amount to settle claims. Attorney’s fees and costs, which are expensed as incurred, will also be incurred in connection with this litigation. From time to time, we are involved in various claims, legal actions and complaints arising in the normal course of business. We are not a named party to any other currently ongoing lawsuit or formal proceeding that, in the opinion of our management, is likely to have a material adverse effect on our financial position, results of operations or cash flows.

NOTE 15. LEGAL PROCEEDINGS

On August 2, 2011, a lawsuit was filed in the Superior Court of California in the County of Santa Clara by Mission West Properties, L.P. (“Mission West”), the lessor for the Hillview Facility naming us as a defendant (Santa Clara County Superior Court case No. 1-11-CV-206456). The lawsuit asserts various monetary and equitable claims, but essentially seeks recovery of remediation and restoration costs in the amount of $3.0 million, which we assert are inflated and unsubstantiated. We also dispute liability in connection with claims by Mission West regarding the extent of restoration mandated by the lease.

Mission West sought leave to amend its Complaint to assert additional claims arising from Mission West’s purchase of the Hillview Facility. On July 30, 2012, Court denied the motion to amend without prejudice. Mission West re-filed its motion, seeking leave to plead new claims for promissory fraud, intentional and negligent misrepresentation, and concealment against Exar. We opposed the motion; a hearing was held on October 11, 2012. The Court ruled on October 17, 2012 that Mission West could amend its Complaint to assert the new claims against us.

We previously filed an Amended Cross-Complaint against Mission West on November 21, 2011 for the following Causes of Action: (1) Promissory Fraud; (2) Breach of the Covenant of Good Faith and Fair Dealing; (3) Contract Reformation; and (4) for Deposit in Court. The Cross-Complaint also asserts the following causes of action against our former subtenant, Kovio, Inc.: (1) Declaratory Relief and Indemnity; (2) Breach of Contract; and (3) for Deposit in Court. Responsive pleadings have been filed by the Cross-Defendants. In June 2011, we dismissed the cause of action for Deposit in Court against both Cross-Defendants.

Discovery, including depositions of key witnesses in the lawsuit, has begun but was informally stayed through mid-October pending resolution of Mission West’s motion to amend. It is expected that discovery, primarily in the form of depositions, will now proceed. An accrual of $1.2 million has been recorded as the estimated amount to settle claims. Attorney’s fees and costs, which are expensed as incurred, will also be incurred in connection with this litigation.

From time to time, we are involved in various claims, legal actions and complaints arising in the normal course of business. We are not a named party to any other currently ongoing lawsuit or formal proceeding that, in the opinion of our management, is likely to have a material adverse effect on our financial position, results of operations or cash flows.