Cisco Dodges A Legal Bullet: Court Reportedly Rejects Centripetal's Patent Infringement Claims
Portfolio Pulse from Nabaparna Bhattacharya
Cisco Systems, Inc. (CSCO) has won a legal case as a federal judge dismissed patent infringement claims by Centripetal Networks. The initial $2.75 billion award against Cisco in 2020 was reversed due to an ethics issue involving the judge's wife owning Cisco stock. The case was reassigned, and the new judge ruled that Cisco did not infringe upon Centripetal's patents. CSCO shares dipped slightly by 0.33% to $49.17.
December 13, 2023 | 3:10 pm
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Cisco Systems, Inc. emerged victorious in a patent infringement case, which could have cost the company $2.75 billion in damages. The dismissal of the case removes a significant legal overhang.
The dismissal of the patent infringement case against Cisco removes a substantial financial and reputational risk for the company. This positive legal outcome is likely to be viewed favorably by investors and could lead to a short-term uplift in Cisco's stock price, despite the slight dip on the last check.
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RELEVANCE 100