Qualcomm agrees to pay $75M in all-cash deal to settle licensing suit

Qualcomm investors say if the company stumps up $75 million, this should resolve lawsuits they brought over claims the chipmaker misled them by describing its sales and tech licensing businesses as separate concerns, artificially inflating the share price at the same time. The lead plaintiffs in the consolidated litigation …

[Timto]

If a shareholder sues the company they own, how is that possibly ever going to be a win for them? Where does the money come from?

[Doctor Syntax]

It comes from the shareholders. As do all the lawyers' fees. Lucky old lawyers.

[david 12]

From the insurance company. I haven't found any details about Qualcomm, but the insurance is sometimes described as D&O "side C" cover.

And so the settlement doesn't mean that Qualcomm has agreed with the decision -- it means that the Qualcomm insurer(s) have agreed to settle.

If, as sometimes is the case, Qualcomm has a "tower" of insurance policies, the primary insurer may not care either way -- they've lost their money already in court costs. Now we would be looking at the secondary insurance, and they may be thinking "5M to settle now, or maybe 150M if we loose, unlikely as that may be"

[Pascal Monett]

"maybe 150M if we" lose

Well I guess I'd be on the side of let's roll the dice and lose.

If investors are stupid enough to sue their investment, they deserve to see it tank.

You don't like what the company is doing ? Fucking sell your shares.