Qualcomm agrees to pay $75m to settle investor fraud lawsuit

Qualcomm, known for its powerful Snapdragon processors and 5G modem chips, has agreed to pay $75 million to settle a class action lawsuit filed by the company's investors. Investors claimed that Qualcomm misled them by making statements that artificially inflated the company's stock price.

Here's What We Know

One of the points of contention was Qualcomm's assertion that its chip sales and licensing businesses were separate entities, as well as the company's refusal to licence its standard-essential patents to competitors. These patents must be licensed on fair and non-discriminatory terms because they are necessary to meet certain technical standards.

The compensation award must still be approved in the U.S. District Court for the Southern District of California in San Diego. The parties will meet on 26 June to schedule a final hearing to settle the lawsuit.

News of the agreement nearing approval had a positive impact on Qualcomm shares, which jumped $4.87 (2.19%) to $227.09 in NASDAQ trading.

Source: The Register