Rambus investors have found themselves riding a financial roller coaster filled with ups and downs contingent upon how the technology company fares in court. If you happen to be one of those investors, you better refill your Dramamine prescription. That's because a U.S. federal judge this week postponed indefinitely patent infringement cases filed by Rambus against several rival memory chip makers. News of the legal setback sent Rambus' shares hurtling downwards 22 percent in after-hours trading.
The defendants argued for the delay following Judge Sue L. Robinson's ruling on January 9 that the patent suit against Micron Technologies is "unenforceable" and that "spoliation" of evidence occurred.
"We are pleased that Judge Whyte recognized that the Delaware Court's unenforceability ruling impacts the patents asserted by Rambus in the California matter, and that he stayed Rambus' patent case against Micron," Micron general counsel Rod Lewis said in a statement. "We believe that Judge Robinson's thorough decision will be upheld on appeal."
Not surprisingly, Rambus holds a decidedly different opinion of the ruling. "While we are disappointed with the stay of the coordinated cases, it our expectation that the conflicting opinions of the district courts regarding document spoliation will go up together on appeal," Tom Lavelle, Rambus general counsel, said in a statement.