Burford Shares Jump on $5.7B Apple Verdict

Burford Shares Jump on $5.7B Apple Verdict

Burford Capital Ltd. shares surged more than 12% on Monday, marking the firm’s largest intraday gain since late March. The rally followed a federal jury verdict in San Diego, issued late on September 25, that Apple Inc. owes over $5.7 billion for infringing patents owned by Taction Technology Inc., which cover vibration‑based technology. The award was described as one of the largest patent verdicts in U.S. history.

Discovery in the litigation revealed that Taction Technology received financing from Gronostaj Investments LLC and Kenosha Investments LP, entities identified in separate proceedings as indirect subsidiaries of Burford Capital Ltd.

In a statement released on Monday, Burford said that if the verdict amount were paid as issued, the company’s entitlement would be approximately $1.4 billion, split roughly equally between its balance sheet and its investment funds. The firm cautioned that the figure is likely to change through post‑trial and appellate proceedings.

Apple has filed a motion for judgment as a matter of law, seeking to have the jury’s verdict set aside. The appeal will be heard by the U.S. Court of Appeals for the Federal Circuit, a court known for scrutinising large patent verdicts.

Burford emphasized that the jury verdict does not constitute a final judgment or cash proceeds, noting that the case remains subject to significant litigation and collection risks. The company added that litigation matters frequently resolve for amounts below the jury verdict and that the parties could settle for considerably less. The ultimate entitlement will also depend on the terms of Burford’s financing agreement and on applicable fees, expenses, taxes, and other deductions.