Why InterDigital Shares Got Crushed

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What: Shares of InterDigital have gotten crushed today by as much as 20% after the company lost a patent suit against several smartphone makers.

So what: An administration judge overseeing the International Trade Commission investigation found that Nokia, Huawei, and ZTE did not infringe on InterDigital's intellectual property. InterDigital said it strongly disagrees with the finding and will petition for review.

Now what: LG Electronics was initially part of the complaint, but opted to settle with the company. A final determination will be made by October 28. InterDigital's business hinges upon patent lawsuits, underscoring the legal risks that it faces when attempting to license IP. The company will host a conference call tomorrow morning to discuss the implications with investors.

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The article Why InterDigital Shares Got Crushed originally appeared on Fool.com.

Fool contributor Evan Niu, CFA, has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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