Chinese firm awarded billions

From the Associated Press

A Santa Clara County judge awarded a Hong Kong conglomerate a $2.8-billion judgment against a Fremont, Calif., video technology company after its founder gave false testimony and failed to appear for court-ordered proceedings.

Superior Court Judge Jack Komar awarded the judgment Wednesday to New World TMT, a unit of New World Development Co. The judge had ruled that Jianping "Tony" Qu, founder of video technology provider PrediWave, gave false testimony in depositions and did not appear for a court-ordered deposition and settlement conference.

The decision included $2 billion in punitive damages.

"It's refreshing to know that Chinese companies that have disputes with American companies can come to our courts and be treated fairly and seek redress for claims they have," said Dennis Ellis, attorney for New World.

In a statement on the company's website, PrediWave said New World's suit was an effort to make the company a "scapegoat for their own blunders."

New World accused Qu, PrediWave and its affiliated companies of defrauding it of about $700 million. The four-year partnership began to unravel in 2004, after PrediWave delivered TV set-top boxes that did not work, Ellis said.

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