Please ensure Javascript is enabled for purposes of website accessibility

Why VirnetX Holding Stock Jumped Monday

By Daniel Sparks - Feb 24, 2020 at 1:55PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

A key court decision has investors in the internet security software company looking up.

What happened

Shares of internet security software company VirnetX (VHC -1.55%) jumped on Monday, even as the market fell sharply. Shares rose as much as 18.3%. As of 12:50 p.m. EST, however, the stock was up 11.5%.

The stock's gain follows a decision by the U.S. Supreme Court to deny Apple's (AAPL -2.50%) petition for a writ of certiorari to review the judgment of a previous ruling in a case between VirnetX and Apple.

A stock chart with a rising arrow on a green background.

Image source: Getty Images.

So what

It's not surprising shares are up on the news that the Supreme Court decided not to hear Apple's writ of certiorari. As VirnetX noted in a press release about the decision, "The underlying judgment in the case awarded VirnetX a total of $439.8 million in damages, fees, and interest."

"We have always believed that we were in the right with our court actions against Apple. Four juries and countless judges agree," VirnetX CEO Kendall Larsen said in a statement on Monday. "We believe that our technology provides an important security feature in some Apple products especially the iPhone."

Now what

Going forward, VirnetX said it expects Apple will "honor the decisions rendered by our courts and their esteemed judges and honor an agreement to abide by the court's decision."

While the case is material for VirnetX, with its sub-$400 million market capitalization, it's hardly noticeable to $1.3 trillion Apple.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

VirnetX Holding Corp Stock Quote
VirnetX Holding Corp
$1.27 (-1.55%) $0.02
Apple Inc. Stock Quote
Apple Inc.
$137.30 (-2.50%) $-3.52

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/19/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.