When Nvidia faced a consumer class action over faulty computer chips, the company didn't offer pennies on the dollar in cash or next-to-useless coupons. Instead, the company's lawyers say, it stepped up to the plate and offered to repair or replace any damaged laptop or notebook computers.

The settlement Nvidia struck with class counsel at Milberg marked the first time an upstream computer component maker had reached through retailers — in this case, Apple, Dell and Hewlett-Packard — to settle consumer claims. It was "the culmination of a massive effort by Nvidia, three sets of class counsel, the three largest computer manufacturers in the country and a leading settlement administrator in the face of layers of formidable obstacles," Nvidia's lawyers at Orrick, Herrington & Sutcliffe say in their briefs.

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