InterDigital stock dropped 23% on adverse ITC staff recommendation

The stock of Interdigital took a dive merely from a nonbinding ITC recommendation. BusinessWeek reported:

InterDigital shares lost $5.72, or 22.6 percent, to $19.54 Tuesday [8 July 2008] at more than five times their average daily volume. The stock has traded in a 52-week range of $16.47 to $32.79.

InterDigital's complaint before the U.S. International Trade Commission alleges that Samsung is importing into the U.S. and selling 3G -- or third-generation -- handsets that violate five InterDigital patents. The company is seeking a ban on the products.

InterDigital said the ITC staff issued a nonbinding recommendation against barring the disputed products from the U.S.

The administrative law judge handling the case is scheduled to file a final initial determination by Nov. 25, and the ITC is expected to render a final determination by March 25, 2009.

"We strongly believe we will demonstrate our case before the (judge) and the (ITC) and secure the appropriate relief against Samsung," said Lawrence F. Shay, InterDigital's President of Patent Licensing, in a statement.

IPBiz notes that the ALJ has yet to rule. Then the ITC looks over the ALJ's decision. Long way to go for such a strong stock reaction!