Settlement to trim Micron's earnings

Micron Technology Inc., the biggest U.S. memory chip maker, said it cut previously reported first-quarter earnings by as much as $80 million to reflect a settlement resolving claims it conspired to fix chip prices.

The accord resolves private antitrust lawsuits filed over U.S. sales of dynamic random access memory, or DRAM, from 1999 to 2002. The claims were brought by manufacturers and individuals alleging that a price-fixing conspiracy drove up costs for the chips, a memory component used in personal computers, laptops and video game consoles.

"It is expected that the settlement will result" in a reduction "in an amount not to exceed $80 million," Micron said Tuesday in a statement.

Micron has been in settlement talks to end similar claims by state attorneys general who sued the company and other DRAM makers in July, said company spokesman Dan Francisco. The private antitrust suits against chip makers stemmed from a 2002 Justice Department probe of the DRAM market. Micron cooperated with U.S. officials in exchange for not being charged with a crime.

The settlement dismisses Micron from the consumer class action, or group lawsuit, originally filed in San Francisco federal court. The accord is subject to court approval.