Why Rambus Shares Soared
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
So what: Rambus' case against rival SK Hynix dates back over a decade, and was originally filed in August 2000. Judge Ronald Whyte found that the Rambus patents in question were valid and that SK Hynix had indeed infringed, entitling Rambus to royalty payments for past infringement.
Now what: Because Rambus was found guilty of "willfully" destroying documents, its punishment will simply be lower royalties. Whyte said that Rambus should have anticipated litigation and should have retained the documents, but said the company didn't "deliberately" destroy any that it thought would help Hynix. Rambus said the ruling doesn't give Hynix a license going forward, but hopes to settle the dispute "completely."
Interested in more info on Rambus? Add it to your watchlist byclicking here.
The article Why Rambus Shares Soared originally appeared on Fool.com.Fool contributorEvan Niuholds no position in any company mentioned.Click hereto see his holdings and a short bio. The Motley Fool has adisclosure policy. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. Try any of our Foolish newsletter servicesfree for 30 days.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.