After nine months of high-level negotiations, Microsoft Corp. agreed to pay Sun Microsystems Inc. nearly $2 billion to settle Sun’s antitrust litigation and bring peace to Silicon Valley. Face-to-face talks had begun at Sun’s boardroom on July 4, 2003, when Microsoft Chairman Bill Gates, CEO Steve Ballmer and GC Bradford Smith faced off with Sun CEO Scott McNealy, then-GC John Croll and Lee Patch, vice president of legal affairs. Lloyd “Rusty” Day Jr., of Cupertino’s Day Casebeer Madrid & Batchelder, had spearheaded Sun’s six-year court battle. “Rusty Day was the Norman Schwarzkopf, the commander-in-chief going into battle and directing the action,” Patch said. “I was in D.C., [serving as] the chief of staff.”
Assistant District Attorney James Hammer was out and a veteran Solano County prosecutor was taking over the San Francisco homicide team under a shake-up announced by DA Kamala Harris. Valerie McGuire, who had tried at least 20 homicide cases, would begin April 19. Hammer, a supporter of former DA Terence Hallinan, had gained notoriety as the chief prosecutor on the 2002 dog mauling prosecution of Robert Noel and Marjorie Knoller.
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