Vringo shares give back some gains
The mobile phone software maker flexes its legal muscle.
The New York company, backed by billionaire Mark Cuban, was initially boosted Tuesday by an erroneous report that it had settled its infringement dispute with Google (GOOG) regarding patents it acquired from the now-defunct Lycos search engine. But when word got out that no settlement had in fact been reached, Vringo's stock plummeted.
The two companies are in court-ordered settlement talks. An analyst quoted by Barron's says the search engine giant may face damages from the Vringo case topping $1 billion and may have to acquire its smaller rival.
Gannett (GCI), Target (TGT) and IAC/InterActiveCorp. (IACI) have also been named as defendants by Vringo because they are customers of Google. The company last week reached a settlement with AOL (AOL) and Monday filed a patent infringement suit in Europe against the U.K. subsidiary of ZTE Corp. (ZTCOF), a Chinese company.
In an interview, company spokesman Cliff Weinstein rejected the "patent troll" label, saying the company is not only interested in litigation and plans to develop its technology. Whatever its goals, the company has received plenty of attention. Its shares have skyrocketed more than 300% since the start of the year. The company, which has 27 employees, went public in 2010 at $4.60 and also has operations in Israel.
--Jonathan Berr in long Target. Follow him on Twitter @jdberr.
More from Top Stocks
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
The stock rises 9% after the company reveals strong second-quarter results.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.