Tuesday, November 6, 2012

Vringo, Inc. (AMEX:VRNG) shares volatile ahead of jury verdict

Last Wednesday, intellectual property firm Vringo, Inc.(NYSEAMEX:VRNG) provided an update on the on-going court case between its unit I/P Engine and a number of Internet companies which include AOL and Google.

The case is being heard in the U.S. District Court, Eastern District of Virginia, Norfolk Division.

The court ruled that under the equitable doctrine of laches, damages should be calculated beginning on September 15, 2011, the date that I/P Engine filed its complaint. I/P Engine had previously sought to have such damages calculated from September 15, 2005. The Court considered a number of motions, including defendants' motions for judgment as a matter of law as to invalidity and non-infringement, which the Court denied, according to statement by Vringo.

Should Investors Buy VRNG Ahead of The Final Court Decision? Find Out Here

After the court ruling the stock lost as much as 36 percent, as it means that the amount of potential damages is limited to about one-fifth of the $500 million Vringo had initially asked.

This morning, shares in Vringo were volatile in trading swinging between $3 and $4.42 in early trades.

"Update: The shares are halted for pending news a hour ago. Seems like some news are on the way regarding Google case. The stock was last up 7.60% to $4.25."

The jury that is deliberating on its trial with Google is reported to have asked for instructions on damages.

Seeking Alpha, which is following the case very closely, said that with each passing day the outcome of the trial seems to be getting more desperate. Google's lawyers are starting to look a lot more nervous than they did earlier.

On Monday the jury was sent home for the third day without having reached a verdict in its patent infringement suit against Google and other internet companies. The news of the jury's damages questions however resulted in the stock rising more than 42 percent.

I/P Engine sued Google, AOL, Gannett, and IAC Search & Media, claiming they have been using its patents without permission.

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