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© tom_schmucker-dreamstime.com Electronics Production | December 12, 2013

Xilinx Vs. Flextronics on fraud claims

Xilinx has sued EMS provider Flextronics, claiming that the manufacturer fraudulently resold its products.
Xilinx claims that the EMS provider, has resold its products. Flextronics had acquired these products at a discount, on behalf of another client, and then continued to sell the devices on at a much higher rate.

As a specific example, Bloomberg writes, citing a complaint filed with state court in San Jose, California: Flextronics ordered a large discounted order on behalf of Airvana Network Solutions ( a Xilinx customer), and then sold devices to Checkpoint Systems for a higher price.

Additional to that; Xilinx also claims that Flextronics, has dealt in “gray market and counterfeit” of its products. The complaint includes allegations of fraud, misrepresentation and breach of contract, the report concludes.
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