Qualcomm Settles Sales and Licensing Lawsuit With $75 Mn Payment

• Qualcomm is set to pay $75 million in a settlement over licensing and sales practices that allegedly artificially inflated share prices.
• According to the lawsuit, the company falsely presented its technology licensing and chip sales as separate businesses.

Qualcomm has agreed to a $75 million settlement to a lawsuit brought against it by shareholders. The lawsuit accuses the chip manufacturer of misleading licensing and sales practices. The preliminary settlement awaits approval from the US District Judge, who classified the suit as a class action in early 2023.

According to the lawsuit filed against Qualcomm and top executives, including former CEOs, the chip maker misled shareholders by fraudulently representing its technology licensing and chip sales as separate business entities when, in fact, they were bundled to impede competition. These practices allegedly artificially inflated the company’s share prices.

See More: AMD Initiates Breach Probe as Data Appears on Darknet Forum For Sale

The suit concerns company operations between 2012 and 2017. The issue was further complicated by new lawsuits Apple and the Federal Trade Commission (FTC) brought over Qualcomm’s market practices involving allegedly unfair pricing and anti-competitive licensing terms.

While Qualcomm has agreed to the settlement, it has denied any wrongdoing. Furthermore, the EU General Court also reversed the European Commission’s findings that Qualcomm’s chip sales practices to Apple were anti-competitive. It remains to be seen if these lawsuits will impact Qualcomm’s operations in the near future.

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