On April 13th, Pendrell Corporation (NASDAQ: PCO) released after-market news that the Court of Appeal of the State of California has overturned the 2008 California Superior Court jury verdict in the litigation between Pendrell’s subsidiary, ICO Global Communications (Operations) Limited (“ICO”), and The Boeing Company and certain of its subsidiaries (“Boeing”). The Court also awarded Boeing its appellate costs.
ICO was awarded $603 million in October, 2008 by a jury following a lengthy trial in California Superior Court. The jury had found that one of Boeing’s subsidiaries had committed fraud and breach of contract, and that Boeing had tortiously interfered with ICO’s contractual rights in connection with a $2 billion construction and launch agreement for a worldwide satellite communications network.
Judgement on the verdict and post-judgement interest of ten percent were appealed by Boeing in early 2009 and today… BUMP. This was an unexpected surprise for the Pendrell’s investors. Our wild guess is: PCO will spend all of their available $230.38M/cash to appeal the jury’s verdict judging by the Ben Wolff, CEO of Pendrell, comment:
[quote style=”1″]We are clearly disappointed with the court’s decision and we are evaluating our options for further review[/quote]
Well, one man’s trash is another man’s treasure: we alerted PCO stock at lows to our Twitter and Facebook followers. Pendrell Corporation shares bounced from $1.10 at the time of alert to $1.27 as the high of the day, representing 15% in day-trading gains. Congratulations to all who followed to our winning alert.
U.S. Corporate Headquarters
2300 Carillon Point
Kirkland, WA 98033
Pendrell Corporation (NASDAQ: PCO), through its subsidiary, Pendrell Technologies, is a fully-integrated intellectual property (“IP”) investment and advisory firm. Pendrell Technologies develops and implements strategies to acquire, commercialize and license IP. It also assists its clients with a variety of IP services, including IP valuation and investment analysis, IP landscape analysis, IP divestitures and IP risk mitigation strategies.