Qorvo Announces Verdict and Damage Award in Litigation Versus Akoustis

Rhea-AI Summary

Qorvo (Nasdaq: QRVO), a global leader in connectivity and power solutions, has won a significant legal battle against Akoustis Technologies. On May 17, 2024, a federal jury in Delaware ruled that Akoustis willfully misappropriated Qorvo's trade secrets and infringed on their BAW filter design patents.

The jury awarded Qorvo over $31.5 million in compensatory damages and $7 million in punitive damages. This verdict potentially allows Qorvo to seek an injunction to halt the sale of infringing Akoustis products.

Originally filed in October 2021, this case underscores Qorvo's commitment to protecting its intellectual property.

Positive

• Federal jury verdict in favor of Qorvo on May 17, 2024.
• Award of over $31,500,000 in compensatory damages.
• Award of $7,000,000 in punitive damages.
• Potential for an injunction against Akoustis products.
• Reaffirms Qorvo’s commitment to protecting intellectual property.

Negative

• Litigation process began in October 2021, indicating a prolonged legal battle.
• Future legal expenses and enforcement costs could arise from pursuing injunction.

News Market Reaction

-0.70%

1 alert

-0.70% News Effect

On the day this news was published, QRVO declined 0.70%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

GREENSBORO, N.C., May 20, 2024 (GLOBE NEWSWIRE) -- Qorvo® (Nasdaq: QRVO), a leading global provider of connectivity and power solutions, today announced that a federal jury in the U.S. District Court for the District of Delaware returned a verdict on Friday, May 17, 2024, in favor of Qorvo, finding that Akoustis Technologies, Inc. and Akoustis Inc. (together, "Akoustis") willfully and maliciously misappropriated Qorvo trade secrets and infringed certain Qorvo patents relating to BAW filter designs. The jury awarded Qorvo over $31,500,000 in compensatory damages and an additional $7,000,000 in punitive damages. This verdict enables Qorvo to pursue an injunction against Akoustis products. Qorvo is pleased with the outcome of this case that was originally filed in October 2021. 

Qorvo is committed to protecting its valuable intellectual property and remains focused on solving our customers' most complex challenges.

About Qorvo

Qorvo (Nasdaq:QRVO) supplies innovative semiconductor solutions that make a better world possible. We combine product and technology leadership, systems-level expertise and global manufacturing scale to quickly solve our customers' most complex technical challenges. Qorvo serves diverse high-growth segments of large global markets, including consumer electronics, smart home/IoT, automotive, EVs, battery-powered appliances, network infrastructure, and aerospace/defense. Visit www.qorvo.com to learn how our diverse and innovative team is helping connect, protect and power our planet.

Qorvo is a registered trademark of Qorvo, Inc. in the U.S. and in other countries. All other trademarks are the property of their respective owners.

This press release includes "forward-looking statements" within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements about our plans, objectives, representations and contentions, and are not historical facts and typically are identified by terms such as "may," "will," "should," "could," "expect," "plan," "anticipate," "believe," "estimate," "forecast", "predict," "potential," "continue" and similar words, although some forward-looking statements are expressed differently. You should be aware that the forward-looking statements included herein represent management's current judgment and expectations, but our actual results, events and performance could differ materially from those expressed or implied by forward-looking statements. We do not intend to update any of these forward-looking statements or publicly announce the results of any revisions to these forward-looking statements, other than as is required under U.S. federal securities laws. Our business is subject to numerous risks and uncertainties, including those relating to fluctuations in our operating results on a quarterly and annual basis; our substantial dependence on developing new products and achieving design wins; our dependence on several large customers for a substantial portion of our revenue; a loss of revenue if defense and aerospace contracts are canceled or delayed; continued effects of the COVID-19 pandemic; our dependence on third parties; risks related to sales through distributors; risks associated with the operation of our manufacturing facilities; business disruptions; poor manufacturing yields; increased inventory risks and costs, including under long-term supply agreements, due to timing of customers' forecasts; our inability to effectively manage or maintain evolving relationships with chipset suppliers; our ability to continue to innovate in a very competitive industry; underutilization of manufacturing facilities; unfavorable changes in interest rates, pricing of certain precious metals, utility rates and foreign currency exchange rates; our acquisitions and other strategic investments failing to achieve financial or strategic objectives; our ability to attract, retain and motivate key employees; warranty claims, product recalls and product liability; changes in our effective tax rate; enactment of international or domestic tax legislation, or changes in regulatory guidance; changes in the favorable tax status of certain of our subsidiaries; risks associated with environmental, health and safety regulations, and climate change; risks from international sales and operations; economic regulation in China; changes in government trade policies, including imposition of tariffs and export restrictions; we may not be able to generate sufficient cash to service all of our debt; restrictions imposed by the agreements governing our debt; our reliance on our intellectual property portfolio; claims of infringement of third-party intellectual property rights; security breaches and other similar disruptions; theft, loss or misuse of personal data by or about our employees, customers or third parties; provisions in our governing documents and Delaware law may discourage takeovers and business combinations that our stockholders might consider to be in their best interests; and volatility in the price of our common stock. These and other risks and uncertainties, which are described in more detail under "Risk Factors" in Part I, Item 1A of our Annual Report on Form 10-K for the fiscal year ended April 1, 2023, and Qorvo's subsequent reports and statements that we file with the SEC, could cause actual results and developments to be materially different from those expressed or implied by any of these forward-looking statements.

At Qorvo®
Doug DeLieto
VP, Investor Relations
1.336.678.7968

FAQ

What was the verdict in the Qorvo vs. Akoustis lawsuit?

The federal jury found Akoustis willfully misappropriated Qorvo's trade secrets and infringed on their patents.

How much was Qorvo awarded in the lawsuit against Akoustis?

Qorvo was awarded over $31.5 million in compensatory damages and $7 million in punitive damages.

What is the significance of the Qorvo vs. Akoustis verdict for QRVO stock?

The verdict emphasizes Qorvo's strong IP protection, potentially enhancing investor confidence and influencing QRVO stock positively.

What are the potential next steps for Qorvo following the verdict against Akoustis?

Qorvo may pursue an injunction to stop the sale of Akoustis products that infringe on their patents.

When was the lawsuit between Qorvo and Akoustis filed?

The lawsuit was originally filed in October 2021.