Akoustis Technologies Hit with $38.6M Verdict in Qorvo Litigation

On November 21, 2024, Akoustis Technologies, Inc. (NASDAQ: AKTS) faced a setback as the U.S. District Court for the District of Delaware finalized a judgment against the company in the matter of Qorvo Inc. vs. Akoustis Technologies, Inc. DE Case 1:21-cv-01417-JPM (the “Qorvo Litigation”).

Following a trial, the District Court entered an amended final judgment requiring Akoustis to pay $38,595,023.00 due to alleged infringement and misappropriation by the company. Additionally, $11,743,745.54 in attorneys’ fees awarded by the District Court, along with pre-judgment interest for patent infringement and misappropriation of trade secrets under North Carolina law were part of the judgment. The court also ordered post-judgment interest on the damages awards, collectively referred to as the “Fees and Interest Awards”, at a rate of 5.138%.

Furthermore, the judgment included injunctive relief against Akoustis Technologies. The company is now permanently enjoined from possessing any confidential information copied or derived from certain trade secrets, selling or distributing any product made using such information, or promoting services based on those trade secrets. Akoustis is required to engage an e-discovery vendor at its own expense to identify and remove any such information from its systems. The injunction also prohibits the company from making, using, or selling certain products found to infringe Qorvo patents.

The financial implications of the judgment have left Akoustis Technologies assessing its business, results of operations, and financial condition. The company is considering its options, including seeking protection under bankruptcy laws depending on its ability to secure financing or explore strategic alternatives.

While the company acknowledges the uncertainty the judgment has introduced regarding its financial outlook, it aims to navigate these challenges. Akoustis cautions that forward-looking statements in this context involve risks and uncertainties that could lead to materially different outcomes. The company is committed to keeping shareholders informed and will update as necessary in compliance with regulatory requirements.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Akoustis Technologies’s 8K filing here.

About Akoustis Technologies

Akoustis Technologies, Inc, through its subsidiary, Akoustis, Inc, designs, develops, manufactures, and sells radio frequency (RF) filter products for the mobile wireless device industry in the United States, Asia, Europe, and internationally. It operates through Foundry Fabrication Services and RF Filters segments.