Akoustis Technologies loses litigation against Qorvo. Shares hit an all-time low.
On May 17, 2024, a jury verdict was entered in favor of plaintiff, Qorvo (QRVO), and against Akoustis Technologies (AKTS) after a trial in the U.S. District Court for the District of Delaware in the matter of Qorvo Inc. vs. Akoustis Technologies.
The jury found that Akoustis was unjustly enriched by the willful misappropriation of certain Qorvo trade secrets and that certain accused products infringed U.S. Patent Nos. 7,522,018 and 9,735,755. The company believes that its XBAW products incorporating previously disclosed design updates are not affected by this verdict.
Qorvo was awarded approximately $38.6 million in damages.
Akoustis expects to file post-trial motions seeking to overturn the jury’s verdict, obtain a new trial, and/or amend the judgment as it “respectfully disagrees” with the jury’s findings and plans to vigorously contest the verdict and judgment through post-trial motions in the district court, and through an appeal to the U.S. Court of Appeals for the Federal Circuit if required.
Akoustis shares moved lower following the verdict of the trial. Akoustis said the verdict in has created uncertainty regarding its financial condition and prospects and may negatively impact its ability to raise additional capital.
The company is continuing to evaluate the impact of the verdict on its business, results of operations, and financial condition; however, in the absence of the receipt of additional financing, it will be required to curtail or cease operations and/or seek protection under applicable bankruptcy laws.
Akoustis shares were 47% lower at $0.189 on above-average volume at the time of writing. The stock has a 52-week high of $3.57 and it trading at an all-time lower.
