- Palo Alto (PANW +8.5%) shares surged into the close on a day when a major hearing took place for Juniper's (JNPR +2.2%) patent suit against its share-gaining firewall rival. Attorney/trader Daniel B. Ravicher, who attended the hearing, suggests the proceedings went in Palo Alto's favor, with the judge presiding over the dispute questioning the breadth of Juniper's patent claims.
- As SA contributor Markman Advisors has covered in detail, today's hearing relates to claim construction - the court rules on the scope of Juniper's infringement claims for six patents - as well as Juniper's request for a summary judgment of infringement for multiple patents.
- Palo Alto investors have been nervous for a while about the Juniper suit, which is related to IP Palo Alto's founders developed while working at Juniper-acquired NetScreen.
- Cowen has argued Markman filings leave Juniper well-positioned. Goldman thinks the amount of lawsuit-related "overhang" that has been priced into Palo Alto's shares runs well into ten figures.
- Palo Alto filed a countersuit against Juniper in September.
Palo Alto closes up sharply as Juniper hearing takes place
Nov 15 2013, 16:35 ET