Judge Jackson rocked the universe for Vringo, Inc. (AMEX:VRNG) on Wednesday with a stunning ruling in the Vringo vs. Google Inc(NASDAQ:GOOG) lawsuit that restricts Vringo’s potential damages to those sustained since the date if filing of the Google case. In so doing, Judge Jackson threw cold water on a hopeful day for Vringo investors, whose stock rose to an intraday high of $4.47 before tumbling to $1.75 on the news.
After sporadic trading halts, the stock settled, or, more precisely was frozen in the mid-$2s by the end of the trading day.
Judge Jackson primarily indicated he would only apply the laches argument to Google, and not to the remaining defendants. However, in the end he wound up sticking with his verdict, so there is no change in the laches impact declared last day. To put it in other words, the start date for Vringo’s damages can be no earlier than 15th September, 2011, the date it filed the court case.
Closing arguments are completed and very soon, the jury will have been instructed and will start its deliberations. There is a very good likelihood the verdict will be declared on Friday during the trading day. In all fairness, it must be announced after trading is closed or that trading is stopped before the news breaks so that everyday will have the same prospect to make considered, as conflicting to spontaneous, trading decisions. The panic and uncertainty simply was not fair to the retail shareholder.