In January 2003, the United States Court of Appeals for the Federal Circuit in Washington, D.C. overturned the jury decision in the underlying patent infringement case, thereby mooting this Securities Class Action. Based on this facts, the Lead Plaintiffs moved to dismiss the Class Action. On May 27 2003, the court accepted plaintiffs' voluntary dismissal of the suit by issuing an order “Granting Voluntary Dismissal.” The court stated that it was satisfied that there has been no settlement or compromise of any claims; no payment, has been made or promised directly or indirectly to any plaintiff or any lawyer representing any plaintiff and that Lead Plaintiff's motion is well-founded; and dismissal will not prejudice the absent putative class members; and that the action is dismissed with prejudice.

The original complaint filed in the Action alleges that defendants misrepresented that Rambus owned certain enforceable patents when, in fact, Rambus obtained the patents through fraud. These allegations were based upon the evidentiary record developed in a federal lawsuit in Virginia titled Rambus, Inc. v. Infineon Techs. AG ("Infineon"), which resulted in a jury verdict that Rambus had committed actual fraud.

More specifically, the original complaint alleges that Rambus and certain of its officers and directors disseminated materially false and misleading statements concerning, among other things: (i) the undisclosed fact that Rambus had engaged in fraudulent activity in order to obtain purportedly valuable patents on SDRAM computer memory and memory related technologies which enable semiconductor memory devices to keep pace with faster generations of processors and controllers; (ii) the true enforceability and viability of Rambus' SDRAM patents and the true risks involved with investing in Rambus stock during the Class Period; (iii) the effects these adverse undisclosed actions were having and would continue to have on the Company's growth and earnings prospects; and (iv) that Company insiders, certain of which are named as defendants in the action, sold or otherwise disposed of over $125 million of their privately held Rambus stock while in possession of undisclosed material adverse information regarding the true validity of the Company's SDRAM patents, including the undisclosed fact that such patents were obtained by defendants' fraud.

In May of 2003, the Teachers' Retirement System of Louisiana and Louisiana Municipal Police Employees' Retirement System were appointed lead plaintiffs in a securities fraud class action filed against Rambus and certain of its top officers and directors.

On January 29, 2003, the Federal Circuit Court of Appeals overturned the jury verdict against Rambus in the Infineon case, finding that Rambus's conduct did not constitute actual fraud. Based on this ruling, Lead Plaintiffs moved to dismiss the Class Action with prejudice. As stated above, the Court granted Lead Plaintiffs' motion and dismissed the Class Action.