Akoustis Technologies (NASDAQ: AKTS) stock plummeted over 55% in intraday trading Monday after a Delaware court ruled in favor of Qorvo in a lawsuit.
Akoustis Technologies (AKTS) announced a significant legal defeat after a jury in the U.S. District Court for the District of Delaware ruled in favor of Qorvo Inc. in a high-stakes lawsuit. The jury found that Akoustis willfully misappropriated trade secrets and infringed on two patents owned by Qorvo, resulting in a damages award of $38.6 million.
The lawsuit’s outcome included a mixed verdict where some of Qorvo’s claims were either dismissed or decided in Akoustis’ favor. However, the critical findings of trade secret misappropriation and patent infringement have dealt a severe blow to Akoustis. The company announced its intention to contest the verdict through post-trial motions and potentially an appeal, seeking to overturn or reduce the substantial damages awarded.
In response to the verdict, Akoustis acknowledged the financial uncertainty this judgment has created. The company expressed concerns about its ability to raise capital and sustain operations, indicating that bankruptcy protection might be considered if the financial strain becomes insurmountable.
Last week, investment firm B.Riley adjusted Akoustis Technologies’ price target to $0.75, down from the previous target of $1.00. This adjustment came after the company released its third-quarter fiscal year 2024 earnings report, which failed to meet consensus expectations.
The company reported a third-quarter earnings per share (EPS) of -$0.26, which was $0.14 below analyst estimates of -$0.12. Additionally, Akoustis reported revenues of $7.51 million, falling short of the consensus estimate of $8.55 million.
Akoustis Technologies (NASDAQ: AKTS) Stock Movement
AKTS stock plunged 55.64% on Monday, closing at $0.16. This marks a 62.26% decrease over the week. Trading volume soared to 24,693,492 shares, significantly higher than the average daily volume of 1.03 million.
Edward Cooke is a financial analyst, freelance writer, and editor. He has six years of experience in financial journalism. He has an in-depth understanding of equities markets, tracking major indices and providing real-time analysis on stock price movements, corporate earnings, and market sentiment.
