The Zhitong Finance App learned that Burford Capital Ltd. (BUR.US) once rose more than 12% on Monday, the biggest intraday increase since the end of March, after a federal jury ruled on a patent case involving Apple (AAPL.US). By the close, the stock was up nearly 8%.
According to reports, a federal jury in San Diego ruled on September 25 that Apple must pay more than 5.7 billion US dollars in compensation for infringing on vibration-based technology patents owned by Taction Technology Inc. There are reports that this is one of the most expensive patent judgments in US history.
According to the case's documentation disclosure procedures, Taction obtained financing from Gronostaj Investments LLC and Kenosha Investments LP, which were identified as indirect subsidiaries of Burford Capital Ltd in another lawsuit.
Burford Capital said in a statement on Monday that if the judgment amount is paid according to the ruling, Burford's due amount would be $1.4 billion, roughly distributed between its balance sheet and investment funds.
Burford warned that this figure could change due to post-trial and appeal procedures. Apple has submitted a legal judgment motion requesting the court of first instance to set aside the jury's ruling. The US Federal Circuit Court of Appeals, which hears patent appeals, is famous for scrutinizing huge judgments.
The litigation funding company said, “The jury's ruling does not represent a final verdict, nor does it mean that Burford has received cash proceeds. The case still faces significant litigation and prosecution risks.”
Burford pointed out that the final settlement amount of litigation cases is often lower than the amount decided by the jury, and the parties may reach a settlement for a much lower amount. The company's final due will also depend on the terms of its financing agreement and applicable fees, expenses, taxes, and other deductions.