Best Buy 2013 Annual Report Download - page 22

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22
The plaintiffs in the above securities actions seek damages, including interest, equitable relief and reimbursement of the costs
and expenses they incurred in the lawsuits. We believe the allegations in the above securities actions are without merit, and we
intend to defend these actions vigorously. Based on our assessment of the facts underlying the claims in the above securities
actions, their respective procedural litigation history, and the degree to which we intend to defend our company in these
matters, the amount or range of reasonably possible losses, if any, cannot be estimated.
Trade Secrets Action
In February 2011, a lawsuit captioned Techforward, Inc. v. Best Buy Co., Inc., et. al. was filed against us in the U.S. District
Court, Central District of California. The case alleges that we implemented our “Buy Back Plan” in February 2011 using trade
secrets misappropriated from plaintiff's buyback plan that were disclosed to us during business relationship discussions and
also breached both an agreement for a limited marketing test of plaintiff's buyback plan and a non-disclosure agreement related
to the business discussions. In November 2012, a jury found we were unjustly enriched through misappropriation of trade
secrets and awarded plaintiff $22 million. The jury also found that although we breached the subject contracts, plaintiff suffered
no resulting damage. In December 2012, the court further awarded the plaintiff $5 million in exemplary damages and granted
plaintiff's motion for $6 million in attorney fees and costs. We believe that the jury verdict and court awards are inconsistent
with the law and the evidence offered at trial or otherwise in error. Accordingly, we appealed the resulting judgment and awards
in February 2013 and intend to vigorously contest these decisions.
Other Legal Proceedings
We are involved in various other legal proceedings arising in the normal course of conducting business. For such legal
proceedings, we have accrued an amount that reflects the aggregate liability deemed probable and estimable, but this amount is
not material to our consolidated financial position, results of operations or cash flows. Because of the preliminary nature of
many of these proceedings, the difficulty in ascertaining the applicable facts relating to many of these proceedings, the variable
treatment of claims made in many of these proceedings and the difficulty of predicting the settlement value of many of these
proceedings, we are not able to estimate an amount or range of any reasonably possible additional losses. However, based upon
our historical experience, the resolution of these proceedings is not expected to have a material effect on our consolidated
financial position, results of operations or cash flows.
Item 4. Mine Safety Disclosures.
Not applicable.
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