Marvell Technology Gains 5% As Company Reaches Settlement In Patent Infringement Suit

Shares of Marvell Technology Group Ltd. MRVL were trading higher by 5 percent Thursday morning after the company confirmed it has reached a settlement in a patent infringement suit.

Marvell Technology announced after Wednesday's market close that it reached an agreement with Carnegie Mellon University over a patent infringement lawsuit which was filed almost seven years ago. The company noted that in December 2012, the University obtained a jury verdict in the amount of approximately $1.54 billion (plus ongoing loyalty) based on patent infringement claims.

Marvell Technology noted that the case has now been resolved on mutually acceptable terms and the company will pay an aggregate amount of $750 million with no ongoing royalty payments.

As of the end of January, Marvell Technology held more than $2.3 billion in cash and short-term investments. The company also recorded approximately $388 million for litigation reserves in fiscal 2016.