Vringo Hit Hard On Bloomberg Headlines
Shares of Vringo (NASDAQ: VRNG) fell as much as 15.6 percent on a series of Bloomberg headlines Tuesday morning. Shares have recovered 8.8 percent and were last trading at $3.83.
Google (NASDAQ: GOOG)(NASDAQ: GOOGL) and Vringo are in court to debate a patent ruling from 2012. The jury awarded Vringo $30.5 million. Since then Google has been battling to have the ruling overturned and Vringo has been fighting for additional payments.
The Bloomberg headlines are as follows:
GOOGLE SEEKS TO OVERTURN VRINGO'S $30.5 MILLION PATENT VERDICT
VRINGO WON PATENT-INFRINGEMENT TRIAL OVER GOOGLE IN 2012
VRINGO ASKS APPEALS COURT FOR HIGHER DAMAGE AWARD
Many investors are wondering why these announcements caused a drop in share price, as they are nothing new. Most likely, traders saw the first headline and interpreted it to mean that Google presented notable new evidence or received indication from the judge that it would win the case. However, that Bloomberg headlines do not give any indication that that is the case.
Disclaimer: Luke Jacobi is long Vringo.
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