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Cisco Systems Resolves Antitrust Allegations and Counterfeit-Trafficking Claims in Sweeping Settlement Agreement

January 31, 2024 – In a landmark resolution reached just before closing arguments in a jury trial in the Eastern District of Texas, Dexon Computer has dismissed antitrust allegations against Cisco Systems as part of a comprehensive settlement agreement. Dexon will also pay Cisco to resolve Cisco’s counterfeit-trafficking claims pending in the Northern District of California.

Dexon, an unauthorized reseller of Cisco products, also agreed to stop selling unauthorized Cisco products, revamp its business model, and apply to join Cisco's authorized reseller program. These steps are intended to uphold customer confidence and ensure the delivery of trusted and verified Cisco products.

Cisco sued Dexon in the Northern District of California in July 2020, alleging that Dexon trafficked in counterfeit “Cisco” equipment. Dexon brought counterclaims, including under the antitrust laws, but the court dismissed them. Dexon then brought similar antitrust claims in the Eastern District of Texas in April 2022. A jury trial in the latter case began on January 22, 2024, and the presentation of evidence concluded at the end of that week. The parties were scheduled to deliver closing arguments the following Monday, but on Saturday Dexon moved to dismiss its own claims with prejudice.

Cisco Systems is represented by attorneys from Kellogg Hansen: Aaron M. Panner, Andrew E. Goldsmith, Leslie V. Pope, Alex A. Parkinson, Ryan M. Folio, Caroline A. Schechinger, Geoffrey J.H Block, D. Chanslor Gallenstein, Jonathan I. Liebman, and Hilary M. Weaver. Kellogg Hansen is grateful for the critical contributions by its co-counsel in Texas, Deron R. Dacus of The Dacus Firm PC and Jennifer H. Doan and Mariah Leigh Hornok of Haltom & Doan, and its co-counsel in both cases, Richard J. Nelson, Louis P. Feuchtbaum, Zachary Alinder, and Lyndsey Heaton of Sideman & Bancroft LLP. The overall litigation effort was led by Cisco’s in-house team, including Sarita Venkat, Karen Lu, Gil Ohana, Michael Blaisdell, and Jon Schwartz.

See also: Order of Dismissal (January 29, 2024)

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