Vringo, Inc.(NYSEAMEX:VRNG) shares had an amazing run up this week and soared almost 58% past week and made an time high of $5.55 in Thursday’s session ahead of the trial this week. However , On Friday the stock fell 13.50% after it has raised $45 million in a bid to boost its balance sheet size.
The raising of funds via an equity deal came two days after a U.S. court ordered Google, AOL, Target and Gannett to settle with Vringo over a patents dispute.
The court threw out an appeal made by Google to summarily dismiss the lawsuit made by Vringo against the companies, saying that there were "genuine issues of material fact in dispute."
The settlement discussions are scheduled to be held on October 9 and if no settlement is reach when the trial will start on October 16.
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Vringo is seeking at least $696 million in damages from Google for patent violations.
The patents which are under dispute were developed by Donald Kosak and Andrew Land, who was the chief technology officer of Lycos. They were bought by a company called I/P Engine, which merged with Vringo in July this year.
After the merger Vringo sued big companies such as Google, AOL, Gannett, IAC and Target alleging that the search giant was using the patents to deliver advertisings to users and that Google had gained $38 billion annually as a result of this.
AOL has already settled with Vringo but it is still part of the lawsuit filed by Vringo as it contracts ads from Google.
Strengthening its balance sheet is important for Vringo as it will give it far greater negotiating position in any settlement between Google and the other companies involved in the lawsuit.