Neonode Shares Plummeted Despite Windfall from Samsung Settlement
Neonode Smartphone, a division of Aequitas Technologies, and Samsung have reached a settlement in their patent dispute. Following the optical sensing solutions company’s disclosure regarding a lawsuit, Neonode’s stock fell sharply on Thursday. Through its agreement with Aequitas Technologies, Neonode is entitled to 50% of the settlement even though it was not involved in the litigation against Samsung. Consequently, the business anticipates that this litigation will bring in $15 million to $20 million. The board of directors of the corporation has not yet made a decision regarding the use of the money received from this settlement.
Investors React Harshly: NEON Stock Dives
Investors feel dissatisfied with the outcome, even though Neonode would seem to win easily from a litigation settlement. After a 4.67% increase Wednesday, NEON stock is now down 77.51% in pre-market trade on Thursday. Around 12 million shares were exchanged during today’s intense trading, which coincided with the strong movement. Its three-month daily average of roughly 284,000 units was significantly higher than that.
Neonode’s Future Hangs on Apple Patent Ruling
Furthermore, a comparable patent infringement case brought by Aequitas Technologies against Apple is still pending. If Aequitas Technologies prevails in this case, Neonode may receive additional money from a settlement or damages, depending on the outcome. But there’s no assurance that this will occur or that Aequitas Technologies will prevail in court against Apple.
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