VirnetX tumbles after patent loss in dispute with Apple (update)
cagkansayin

Update 3:17pm: Adds VirnetX comment.
VirnetX (NYSE:VHC) fell 17%, reversing an earlier 58% gain,
after an appeals court ruled against the company in a patent dispute with Apple (AAPL).
A federal appeals court upheld a ruling in favor of Apple (AAPL) after a jury originally ruled in favor of VirnetX (VHC) in a $503 million patent verdict. The court ruling on Thursday was related to an appeal of a U.S Patent Trial and Appeal Board ruling on two patents.
"We are disappointed and disagree with the Federal Circuit's decisions in light of its past rulings on these same patents," Kendall Larsen, VirnetX CEO and President said in a statement. "We are evaluating all of our available options, including potentially seeking rehearing or certiorari review."
In July 2020 the U.S. Patent Trial and Appeal Board ruled that two VirnetX (VHC) patents were unpatentable.
"VirnetXâs challenge to Black Swampâs joinder is forfeited," the court said in its ruling on Thursday. "We have considered VirnetXâs additional arguments and find them unpersuasive. Accordingly, we affirm."
A jury in October 2020 said Apple (AAPL) must pay VirnetX (VHC) $502.8M for patent infringement in a dispute that has lasted more than a decade. In March 2021 VirnetX lost an appeals court ruling in the Apple patent case.
"It appears that VirnetX's long run as one of the only successful Patent Assertion Entities is now over!" Michael D. Cohen, director of research at MDC Financial Research LLC told Seeking Alpha in an email. " All it has left in its litigation with Apple is the extreme long shot of seeking Rehearing from the Appellate Court and a Writ of Certiorari to the U.S. Supreme Court, and then it can reminisce about the one large Judgment that it was able to get out of Apple." 
Attorneys for both sides in a September hearing on the patent case said that the $503 million verdict against Apple (AAPL) would be thrown out if the appeals court agreed with the PTAB decision that the patents were invalid, Bloomberg reported at the time. 
âWe no longer have patents, we no longer have claims, so we lose,â Jeffrey A. Lamken, an outside attorney for VirnetX (VHC) said in September, according to Bloomberg. âWe hope that doesnât happen.â
Separately, VirnetX on Thursday before the appeals court decision was disclosed declared a declared $1.00/share special dividend payable April 17 for shareholders of record April 10.
"We are confident that we are close to a final outcome in our litigation with Apple, and the Board has committed to distribute to our shareholders a substantial portion of the net proceeds after the case concludes," VirnetX CEO Kendall said in the statement on the dividend earlier.
VirnetX (VHC) told Seeking Alpha in an email that it will pay the special dividend regardless of the the litigation outcome.
VirnetX (VHC) short interest is 5.9%.