Cisco Stock (NASDAQ:CSCO)
Even after the SCOTUS decided not to hear an appeal brought by cybersecurity company Centripetal Networks, which would have resulted in Cisco paying Centripetal Networks $2.75 billion due to a patent dispute, shares of Cisco Systems (NASDAQ:CSCO) fell by less than one percent in early trading on Monday.
After the United States Court of Appeals for the Federal Circuit nullified a previously issued award because the initial judge hearing the case disclosed that his wife owned $4,688 worth of Cisco stock, Centripetal requested that the Supreme Court hear their appeal; however, the Supreme Court declined to do so.
U.S. District Judge Henry Morgan issued his decision in 2020, finding that Centripetal’s cybersecurity patents had been infringed upon by Cisco stock. Judge Morgan awarded Centripetal $1.9 billion in damages plus royalties, bringing the total sum to around $2.75 billion.
However, before the verdict, Morgan disclosed to the corporations that while his wife was the owner of 100 shares of Cisco (CSCO), the event did not play a role in his decision and that “nearly every issue” had been settled in his ruling before he became aware of her ownership. In the end, the shares were deposited into an untraceable trust.
Morgan died in May 2022.
According to Reuters, the United States Court of Appeals for the Federal Circuit overturned the decision made by Morgan in June. It remanded the case to a new judge in Virginia. The decision was made because the court determined that Morgan should have recused himself from the case or ensured that the stock was sold.
According to Reuters, the Federal Circuit court said the judge’s ruling would weaken public trust. The court also stated that it was immaterial because Morgan favored Centripetal, even though it was detrimental to his wife’s financial interests.
Centripetal v. Cisco is the name of the case, and its number is 22-246.
In the middle of November, Cisco announced its results and projections for the first quarter, which were above expectations. This resulted in plaudits from analysts but in a muted way.
Featured Image: Megapixl @ Wolterk