Some were hoping for a quick pop as a result of a settlement. This could still happen but it's becoming more likely that this will go full trial. Why? Because Vringo knows they will win and the only question in their minds is how much they will get in settlement. I'm sure Google low-balled
Vringo in settlement talks to make this go away.
The prevailing stock price will move higher if settlement is greater than expectations. If it comes in
at the expectation at the time of award, the pps won't move dramatically.
The impact on Google's financial position is minimal. The biggest issue is its reputation with its
customers, who are also on the hook for patent infringement. Maybe they've all agreed that life
goes on if they lose because there are some companies like Vringo whose survival is dependent
on patent infringement awards. Google's message to its customers is that it should have done
a better job of anticipating patent issues but it won't affect its ability to serve its customers well
in the future.
Google will makes its best effort in court and then explain that the jury had a difficult time
understanding the technical differences and that most like an underdog and don't like
bullies. Google will also explain that when you are the top dog you get challenged and
picked on unfairly from time to time from those looking to cash in on your success.
And, although a Vringo win in court appears likely, those looking for a quick pop are
showing their impatience and moving on. For the remaining patient investors, this
one will likely take a few more weeks to play out.