Marvell Technology Group Ltd. (NASDAQ:MRVL), a global leader in integrated silicon solutions, and Carnegie Mellon University, a private research university, today announced that, pursuant to a court-ordered mediation, the Company and University have settled their patent infringement lawsuit. The parties have resolved the case on mutually acceptable terms, including an aggregate payment by Marvell to CMU of $750 million, with no ongoing royalty payments.
This settlement concludes the legal matter filed almost seven years ago. As previously disclosed, in December of 2012, CMU obtained a jury verdict against the Company in the U.S. District Court of W.D. Pennsylvania in the amount of approximately $1.54 billion (plus an ongoing royalty) based on patent infringement claims. This settlement will resolve all pending appeals.
As of January 30, 2016, the Company’s cash and short term investments exceeded $2.3 billion. Marvell had previously recorded approximately $388 million for litigation reserves in fiscal 2016 related to CMU. (Original Source)
Shares of Marvell Technology climbed about 6% in after-hours trading. MRVL has a 1-year high of $16.78 and a 1-year low of $7.40. The stock’s 50-day moving average is $8.53 and its 200-day moving average is $9.26.
On the ratings front, Marvell has been the subject of a number of recent research reports. In a report issued on February 8, B. Riley analyst Craig Ellis upgraded MRVL to Buy, with a price target of $12, which represents a potential upside of 29.0% from where the stock is currently trading. Separately, on February 3, Citigroup’s Atif Malik maintained a Sell rating on the stock and has a price target of $7.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Craig Ellis and Atif Malik have a total average return of 6.7% and 5.2% respectively. Ellis has a success rate of 50.6% and is ranked #452 out of 3610 analysts, while Malik has a success rate of 37.5% and is ranked #756.
The street is mostly Neutral on MRVL stock. Out of 7 analysts who cover the stock, 4 suggest a Hold rating , 2 suggest a Buy and one recommends to Sell the stock. The 12-month average price target assigned to the stock is $10.33, which represents a potential upside of 11.1% from where the stock is currently trading.
Marvell Technology Group Ltd is a fabless semiconductor provider of analog, mixed-signal, digital signal processing and embedded microprocessor integrated circuits.