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Note 17. Legal Proceedings
12 Months Ended
Mar. 31, 2013
Legal Matters and Contingencies [Text Block]

NOTE 17.    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, located at 233 South Hillview Drive, Milpitas, California, which named us as a defendant (Santa Clara County Superior Court case No. 1-11-CV-206456) (“Action”). The lawsuit asserted various monetary and equitable claims, but essentially sought recovery of remediation and restoration costs associated with our lease of the Hillview Facility. We disputed liability and damages in connection with claims asserted by Mission West.


On April 9, 2013, we entered into a Settlement Agreement and Full Mutual General Release (herein “Agreement and Release”) with Mission West and a related entity Mission West Liquidating Trust (collectively, the “Mission West Entities”), and Kovio to settle this litigation. We agreed to pay $2,412,088 to the Mission West Entities within thirty (30) days of execution of the Agreement and Release and allow the Mission West Entities to retain our security deposit of $242,682. We made this settlement payment on May 3, 2013. Kovio also agreed to pay $345,230 to the Mission West Entities. We agreed to return to Kovio a security deposit in the amount of $314,929, which we have done on April 15, 2013. Following the payments by Exar and Kovio, Mission West’s Complaint and our Cross-Complaint in the Action were dismissed with prejudice on May 13, 2013. The parties agreed to bear their own attorney’s fees and costs. The Agreement and Release contains mutual releases whereby the Mission West Entities, Exar, and Kovio each agreed to release each other from all claims, known and unknown, arising out of, in connection with, or relating to the Action or the events or incidents referred to in the pleadings in the Action. The parties agreed that the Agreement and Release is intended solely as a compromise of disputed claims, was entered into to avoid the uncertainties and costs associated with litigation, and is not an admission of liability by any party. As of March 31, 2013 and April 1, 2012, we accrued $3.0 million and $1.5 million, respectively, for a dispute resolution and related subtenant deposit liabilities which were recorded in other current liabilities line in the consolidated balance sheets.


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.