… Federal Court Denies Motion to Stop Injunction on Diablo Controller, SanDisk ULLtraDIMM

Netlist, Inc. announced that judge Yvonne Gonzalez Rogers of the United States District Court for the Northern District of California denied a motion filed by Diablo Technologies, Inc., on January 13, 2015, requesting the court to stay the preliminary injunction against controller chips used by SanDisk Corp. in its high-speed ULLtraDIMM SSD product line.

The preliminary injunction will therefore remain in place. The court, in a separate ruling, rejected SanDisk’s request that it be allowed to sell existing inventory of the enjoined products.

This order made clear that Diablo and SanDisk are working in concert and are now prohibited from manufacturing and selling the Diablo controller chipset used in the ULLtraDIMM and as a result, from further sale or distribution by SanDisk of the ULLtraDIMM itself.

“We are very pleased with the court’s ruling to deny this motion“, said C.K. Hong, CEO of Netlist. “Endless legal maneuvering does nothing to change the facts that led to the ordering of the preliminary injunction in the first place. Namely, Netlist’s claims that Diablo breached the contract, stole Netlist’s trade secrets and incorporated them in SanDisk’s ULLtraDIMM.  We look forward to securing damages and a permanent injunction on the products in the upcoming trial.“