Qualcomm shares continue to drop amid worries over its violation of antitrust law

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Judge Ko determined that the company took advantage of its strong position in the wireless chip market to charge too much royalty for its patents. She ordered Qualcomm to renegotiate its licensing agreements.

Qualcomm to appeal the ruling

In response, Qualcomm said it will “immediately seek a stay of the district court’s judgement and an expedited appeal to the U.S. Court of Appeals for the 9th Circuit.

Qualcomm vice president and general counsel Don Rosenberg, commented, “We strongly disagree with the judge’s conclusions, her interpretation of the facts and her application of the law.”

The ruling comes after Qualcomm settled its patent litigation with Apple. The companies also signed a six-year global patent license agreement and a multiyear chip supply agreement. Earlier this month, the chipmaker announced that it could receive up to $4.7 billion from its settlement with Apple.

Analysts downgrade ratings and cut price targets for QCOM shares

The court’s ruling prompted a number of Wall Street analysts to downgrade their rating and reduce their price target for QCOM shares.