Qualcomm Settles Shareholder Lawsuit for $75 Million, Resolving Patent Licensing Dispute

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Qualcomm Settles Shareholder Lawsuit for $75 Million, Resolving Patent Licensing Dispute

Qualcomm Settles Shareholder Lawsuit for $75 Million

Qualcomm Inc. (QCOM) has agreed to pay $75 million to settle a lawsuit with its shareholders, marking a victory for investors who had previously failed to hold the company accountable for alleged misleading business practices.

The lawsuit, as reported by The Verge, accused Qualcomm of inflating its stock price by misleading shareholders about its patent licensing practices. Specifically, the company was accused of tying the licensing of essential patents to the purchase of its chips, a practice that drew scrutiny from Apple Inc. (AAPL) and global regulators.

Despite facing legal challenges from Apple and the U.S. Federal Trade Commission (FTC), Qualcomm largely emerged unscathed. The company settled with Apple and saw regulatory actions overturned. Ironically, Qualcomm's stock price even rose during these legal battles, seemingly contradicting shareholder claims of artificial inflation.

However, the $75 million settlement represents a financial resolution that acknowledges shareholder grievances. It brings an end to a period of legal uncertainty and potential financial liability for Qualcomm. The settlement's terms are still awaiting judicial approval, and Qualcomm has not yet commented publicly on the agreement.