Why Vringo, Inc. Shares Tumbled Today

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Vringo  (NASDAQ: VRNG  ) fell more than 10% Tuesday, after Google asked a U.S. appeals court to overturn a previous patent judgment.

So what: Specifically, Google is asking the court to throw out a $30.5 million patent-infringement verdict won by Vringo in 2012. The trial centered around ad placement filtering technology covered under Vringo's patents and used in Google AdWords, AdSense, and Search.

Google attorneys are claiming a "fundamental failure of evidence," while one member of the court's three-judge panel stated he had "problems with the jury's findings" regarding whether Vringo had adequately proven evidence of copying.

Now what: Vringo shareholders should keep in mind this appeal only involves the 2012 verdict, not subsequent rulings in Vringo's case against Google. However, Vringo may still have the upper hand, but note Google also has pending appeals for other positive Vringo rulings. In the end, today's events serve as a reminder of just how difficult it can be for intellectual property firms to cash in against well-funded, unwilling licensees.

Six stock picks poised for incredible growth
If Vringo's a little too risky for you, don't worry -- there are plenty of other great stocks out there poised for staggering growth. We'd like to show you a few.

Meet Motley Fool co-founder David Gardner, who has proved skeptics wrong time, and time, and time again with stock returns like 926%, 2,239%, and 4,371%. In fact, just recently one of his favorite stocks became a 100-bagger. And he's ready to do it again. You can uncover his scientific approach to crushing the market and his carefully chosen six picks for ultimate growth instantly, because he's making this premium report free for you today. Click here now for access.

Read/Post Comments (4) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On May 06, 2014, at 5:23 PM, Patentplays wrote:

    This appeal was over before it started. Apparently Google wanted the 3 Justices of the COA to hold for a new Markman Hearing, in its attempt to cry foul for what many consider a less than stellar defense. Vringo took complete control of the hearing, not even fielding one question relating to laches.

    Don't confuse COA sympathy with an overturned award. I had sympathy for the Google Counsel as well, his argument was far to weak to make an effective Appeal.

  • Report this Comment On May 06, 2014, at 10:04 PM, stockined wrote:

    I still can't figure out why Vringo fell so sharply today, its not like no one knew that google was going to try and appeal. And Vringo fell even before the hearing started. Everyone knew that google was going to try and appeal. And Vringo's lawyer handled himself very well

  • Report this Comment On May 07, 2014, at 6:09 AM, GCF007 wrote:

    i agree and listened to the audio and was actually surprised by Google and their lack of a real case and preparation while Vringo was totally prepared and ready for all the inquiries. If justice is served, it should be in Vringo's favor!!

  • Report this Comment On May 09, 2014, at 9:30 AM, Honest2trade wrote:

    David vs Goliath

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2945889, ~/Articles/ArticleHandler.aspx, 9/3/2015 12:34:40 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Steve Symington

Technology and consumer goods specialist for the Fool. Steve looks for responsible businesses which positively shape our lives. Then, he invests accordingly. Enjoy his work? Connect with him on Twitter & Facebook so you don't miss a thing.

Today's Market

updated 3 hours ago Sponsored by:
DOW 16,351.38 293.03 1.82%
S&P 500 1,948.86 35.01 1.83%
NASD 4,749.98 113.87 2.46%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/2/2015 4:00 PM
VRNG $0.59 Down -0.01 -1.40%
Vringo, Inc. CAPS Rating: **