Burford Capital shares gain on $5.7B Apple patent verdict

Investing.com -- Burford Capital Ltd. rose over 12% on Monday, marking its largest intraday gain since late March, following a federal jury verdict in a patent case involving Apple Inc.

A federal jury in San Diego ruled late on Sept. 25 that Apple Inc. owes more than $5.7 billion for infringing patents owned by Taction Technology Inc. that cover vibration-based technology. Reports described the award as one of the largest patent verdicts in U.S. history.

Discovery in the case showed that Taction received financing from Gronostaj Investments LLC and Kenosha Investments LP, which was identified in separate litigation as an indirect subsidiary of Burford Capital Ltd.

In a statement on Monday, Burford Capital said that if the verdict amount were paid as issued, the company's entitlement would be $1.4 billion, split roughly equally between its balance sheet and its investment funds.

Burford warned that the figure is likely to change through post-trial and appellate proceedings. Apple has filed a motion for judgment as a matter of law, asking the trial court to set aside the jury's verdict. The U.S. Court of Appeals for the Federal Circuit, which handles patent appeals, is known for subjecting large verdicts to scrutiny.

"The issuance of the jury verdict does not represent a final judgment or cash proceeds received by Burford," the company said. "The case remains subject to significant litigation and collection risks."

Burford noted that litigation matters frequently resolve for amounts below a jury verdict, and the parties could settle for considerably less. The company's ultimate entitlement will also depend on the terms of its financing agreement and applicable fees, expenses, taxes, and other deductions.

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