Federal Judge Denies Motion for Stay in Injunction Against Diablo, SanDisk

U.S. District Judge Yvonne Gonzalez Rogers in Oakland denied chipmaker Diablo Technologies' motion for a stay of her preliminary injunction that bars the company from distributing or selling high-speed memory controller chipsets to SanDisk for its ULLtraDIMM solid-state drive product line, in an order Tuesday. Supplier Netlist, which sued Diablo in August 2013 alleging breach of contract, trade secret misappropriations and other charges, won the injunction on Monday (see 1501130036). Rogers did deny Netlist’s motion for an order recalling all ULLtraDIMM modules that already have shipped, saying Netlist “has not met the higher burden associated with a mandatory injunction requiring a recall.” The case is to go to trial in early March. Netlist in a statement Thursday hailed Rogers’ refusal to stay the injunction. “Endless legal maneuvering does nothing to change the facts that led to the ordering of the preliminary injunction in the first place,” Netlist said. “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.” Representatives for Diablo and SanDisk didn’t comment.