Qualcomm shareholders have succeeded in achieving something that Apple and government regulators around the world have tried and failed to do: make Qualcomm pay the price for its strict licensing practices.
In a lawsuit on Tuesday, Qualcomm said it would agree to pay $75 million to settle a lawsuit brought by shareholders, who claim the company misled them about how its business practices worked and artificially inflated its stock price as a result. The settlement was reported earlier By Reuters.
Shareholders objected to Qualcomm’s failure to fully disclose how it handles patent licensing. At the time, the company refused to license its standard core patents to some competitors, and in some cases made buying its chips a condition of a deal.
Qualcomm won, its stock price rose, and the shareholder lawsuit began to look fragile
applethe US Federal Trade CommissionAnd last Organizers A lawsuit was filed against Qualcomm over the same issue. The lawsuits alleged that Qualcomm was engaging in unfair trade practices by tying negotiations on essential patents to requirements that companies purchase its chips as well.
The result left the shareholders’ lawsuit in a funny place: Qualcomm’s stock price soared as a result, so their claim that Qualcomm artificially inflated its stock price began to look very tenuous. As a result, shareholders see this settlement as a good outcome – they actually get paid, unlike everyone else.
A judge must still approve the terms of the settlement. Qualcomm did not immediately respond to a request for comment.