Vringo's roller coaster ride continues this morning. I am hearing from several sources that this morning, Judge Jackson ruled that Vringo's PAST damages will be limited to damages incurred since the Complaint was filed. This would mean that the Vringo would be able to collect damages from September 15, 2011 and going forward. I haven't gotten 100% confirmation of this, but I believe this to be accurate, and it would certainly explain the big dip in share price today.
A few takeaways:
1. If true, it will obviously mean a significant cut in the past damage claim, since past royalties will only be collectable from September 15, 2011 forward.
2. Dr. Becker's damages for this period should be easily calculable, as I understand his damage breakdown is quarter by quarter.
3. Vringo's claim for future royalties is still intact.
Again, I believe this to be true. All told, if we presume to that past royalties are about $500M (which is the approximate range that has been discussed), then we would be looking at a total potential award of $600 to $700 million, not including prejudgment interest and attorney's fees.
Expect more volatility today. Obviously, I am not wild about what this does for my November $5 calls, but I am still encouraged for my common and warrants.
Disclosure: I am long VRNG.