Marvell Technology
Marvell Technology, Inc. is an American company, headquartered in Wilmington, Delaware, which develops and produces semiconductors and related technology. Founded in 1995, the company had more than 6,500 employees as of 2024, with over 10,000 patents worldwide, and an annual revenue of $5.5 billion for fiscal 2024.[1][2]
Company type
- Nasdaq: MRVL
- Nasdaq-100 component
1995
- Sehat Sutardja
- Weili Dai
- Pantas Sutardja
Wilmington, Delaware, U.S.
US$5.508 billion (2024)
US$−568 million (2024)
US$−933 million (2024)
US$21.23 billion (2024)
US$14.83 billion (2024)
6,577 (2024)
Controversy[edit]
Stock options[edit]
In 2006, the US Securities and Exchange Commission (SEC) started an inquiry into the company's stock option grant practices.[50] An investigation determined "grant dates were chosen with the benefit of hindsight" to make the options more valuable.[51] The press estimated that the founders and other executives had made $760 million in gains from the options, which were awarded by the founding couple, Sehat Sutardja and Weili Dai.[52] The SEC asked to interview the company's general counsel Matthew Gloss, but Marvell claimed attorney–client privilege.[53] Gloss was fired just before the investigation results were announced in May 2007.[54] Abraham David Sofaer was hired to investigate the investigation after Gloss alleged it was not independent. In announcing the results of its own inquiry, the SEC did not give Marvell the credit granted to other companies in the options scandal for cooperating with the SEC's investigation or for cleaning up.[55] At the time of the announcement, the co-acting regional director of the SEC's San Francisco office stated, among other things, that the SEC did not believe that the lack of cooperation and remediation shown by Marvell merited much credit in terms of being lenient with Marvell.[55] In announcing its results, the SEC found that Gloss was not a participant in Dai and Sutardja's backdating scheme.[55] Marvell restated its financial results, and stated that Dai will no longer be executive vice president, chief operating officer, and director but continue with the company in a non-management position.[56] The company agreed to pay a $10 million fine in 2008, but did not fire Dai nor replace Sutardja as chairman as stated by the investigating committee.[51][55]
Patent infringement[edit]
In December 2012, a Pittsburgh jury ruled that Marvell had infringed two patents (co-inventors Alek Kavčić and Jose Moura) by incorporating hard disk technology developed and owned by Carnegie Mellon University without a license.[57] The technology, relating to improving hard disk data read accuracy at high speeds, was reported to have been used in 2.3 billion chips sold by Marvell between 2003 and 2012.[58] The jury awarded damages of $1.17 billion, the third largest ever in a patent case at the time.[59] The jury also found that the breach had been "willful", giving the judge discretion to award up to three times the original damage amount.[58] In December 2012, the company lost its mistrial bid in this dispute.[60] Post-trial hearings were scheduled for May 2013 and Marvell reported to be considering an appeal in the interim.[57] In August, US District Judge Nora Barry Fischer upheld the award.[61] On February 17, 2016, Marvell agreed to a settlement in which Marvell will pay Carnegie Mellon University $750,000,000.[62]
