VirnetX rallies as US court rejects Apple’s $440M appeal

Shares of VirnetX Holding Corp (NYSEAMERICAN:VHC), the internet security software group, soared Tuesday after a US appeals court upheld a $440 million judgement it previously won against the iPhone maker Apple Inc in a patent infringement suit.

The US Court of Appeals for the Federal Circuit rejected Apple’s move to appeal a jury verdict dating back to 2016 that was originally valued at $302 million, but grew to $440 million with interest, enhanced damages and other costs, according to a Reuters report.

READ: VirnetX wins US$625.6mln patent case against Apple

In a statement, Apple said it planned to appeal the ruling.

Investors applauded the news, sending VirnetX shares up 64% to $6.33 by the closing bell. Apple shares, meanwhile, gained 2% to $153.07.

READ: Apple ordered to pay ‘patent troll’ VirnetX US$502.6mln

The court’s verdict comes despite the patent claims being ruled invalid by an administrative court, but VirnetX is appealing that decision, according to Reuters.

VirnetX and Apple have been locked in a legal battle for more than eight years, with jurors previously finding that Apple’s modified VPN on Demand, iMessage and FaceTime services infringed on VirnetX’s patents and that Apple’s infringement was willful.

The legal tussle kicked off in 2010 when VirnetX introduced litigation alleging that Apple was guilty of a number of examples of patent infringement.

Contact Ellen Kelleher at [email protected]

Story by ProactiveInvestors