NEW YORK—Shares of InterDigital Inc. plunged Tuesday after the wireless technology developer suffered a setback in a patent dispute against Samsung Electronics Co.
InterDigital shares lost $5.72, or 22.6 percent, to $19.54 Tuesday at more than five times their average daily volume. The stock has traded in a 52-week range of $16.47 to $32.79.
InterDigital's complaint before the U.S. International Trade Commission alleges that Samsung is importing into the U.S. and selling 3G -- or third-generation -- handsets that violate five InterDigital patents. The company is seeking a ban on the products.
InterDigital said the ITC staff issued a nonbinding recommendation against barring the disputed products from the U.S.
The administrative law judge handling the case is scheduled to file a final initial determination by Nov. 25, and the ITC is expected to render a final determination by March 25, 2009.
"We strongly believe we will demonstrate our case before the (judge) and the (ITC) and secure the appropriate relief against Samsung," said Lawrence F. Shay, InterDigital's President of Patent Licensing, in a statement. "We are confident that a thorough and independent review of the facts will support our views and we believe that our position is consistent with the facts discovered in the case."
