Why Shares of VirnetX Holding Corp. Tumbled Today
Shares of patent-holding company VirnetX Holding Corp. (NYSEMKT: VHC) tumbled on Tuesday one day after it disclosed that it was awarded about $440 million in a patent case against Apple (NASDAQ: AAPL). The federal judge in the case ruled that Apple's on-demand VPN and FaceTime features infringed on patents held by VirnetX. Shares had soared between initial word of the ruling on Oct. 2 and a few days prior to the announcement, so this decline may be a simple case of investor enthusiasm getting out of hand.
VirnetX will receive $1.80 for each iPhone, iPad, and Mac product that infringes on the company's patents. The sum of those payments comes out to about $343 million. The court also awarded VirnetX an additional $96 million for attorney' fees and related costs. This is the third time that a court has ruled in VirnetX's favor in cases against Apple.
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Source: Fool.com
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