logo
  Join        Login             Stock Quote

Vringo's (VRNG) Price And Hopes Dashed By Judge's Ruling

 October 31, 2012 04:58 PM
 


U.S. District Judge Raymond A. Jackson crushed Vringo (VRNG) shares earlier today by ruling the company cannot collect damages for the six years prior to the lawsuit's filing last year. The stock is down 35.75% on the news.

What this appears to mean is that even if the jury delivers a guilty verdict and awards VRNG all sorts of money, they can only collect future royalties.

Jackson says that the suing party waited too long since Google (GOOG) made the patent technology available in 2005. It's the law of "Laches." In a nutshell, it means the suing party waited to be in a better position before making a claim; in this case, perhaps waiting for Google's revenue to climb enough to seek spectacular damages.

[Related -Boost Your Dividend Yield]

The judge believes the case will be wrapped up tomorrow, and we guess that VRNG will appeal the judge's ruling. Just a guess as we are not legal eagles.

The way it reads to us, VRNG could still walk away with a plentiful haul, as long as the jury rules in VRNG's favor. They could receive royalties on close to $65 billion in estimated North American Google revenue through 2016. With a 0.5% royalty rate, the total figure could still reach $320 millionish. Again, we aren't lawyers and it's our interpretation of what is available in the press. We could be way off and depends entirely on the jury's verdict.

It's precisely because of the risky nature of these patent lawsuits that we suggested rolling out of the stock into options.

iOnTheMarket Premium
Advertisement

Advertisement


(1)
 
11/1/2012 1:41:13 AM
Trader by Lawrence
I was lead to believe Google would find a way around the future royalties and they would have to pay based soley on the last year till now . Correct me if this is not the case please. thanks
Rating: (5) (1)
Post Comment -- Login is required to post message
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
 

rss feed

Latest Stories

article imageThe Sixty Percent Alibaba Play No One Is Talking About

It's official: Chinese e-commerce juggernaut Alibaba (NYSE: BABA) goes down as the biggest U.S. IPO in read on...

article imageThe Finer Points Of Hedging… Or Not

Barry Ritholtz asks the right question—Why hedge?–in the wake of last week’s announcement that California read on...

article imageBulls Leverage Hopeful News to Launch a Tepid Breakout Attempt

Stocks were able to leverage some optimistic news and dovish words from the Fed to take another stab at an read on...

article imageG-20 Minus One Country Plus 900 Bullet Points Equal 2 Percentage Points of Extra Growth?

For investors, the G-20’s super-secret plan to make the world grow faster is more a sideshow than a reason read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.