Qualcomm settles $75 million lawsuit with shareholders

Qualcomm, a technology company based in San Diego, has agreed to pay $75 million to settle a lawsuit brought by shareholders. The lawsuit alleged that Qualcomm deceived investors by concealing anticompetitive sales and licensing practices. The settlement, which is awaiting approval by U.S. District Judge Jinsook Ohta, was filed as an all-cash preliminary agreement in federal court.

The lawsuit, certified as a class action in March 2023, claimed that Qualcomm, along with former chief executives Paul Jacobs and Steven Mollenkopf, artificially inflated its share price between February 2012 and January 2017. Shareholders accused Qualcomm of misrepresenting its chip sales and technology licensing as separate entities to stifle competition.

In a related legal battle in January 2017, both the Federal Trade Commission and Apple sued Qualcomm over allegations of monopolistic practices in the baseband processor market. Apple accused Qualcomm of overcharging for chips and imposing unfair licensing terms. Despite Qualcomm's denial of wrongdoing, its share price dropped by 13% after Apple's lawsuit.

Qualcomm, headquartered in San Diego, has not yet commented on the settlement. The case, known as In re Qualcomm Inc Securities Litigation, is ongoing in the U.S. District Court for the Southern District of California.

The settlement between Qualcomm and shareholders highlights the importance of transparency and fair competition in the technology industry. Investors rely on accurate information to make informed decisions, and companies must uphold ethical business practices to maintain trust and integrity in the market.