BEDFORD, Mass.-Shares of Boston Communication Group Inc. jumped more than 25 percent after a U.S. appeals court halted an order that would have forced the company to stop selling prepaid services to some of its carrier customers.
The U.S. Court of Appeals for the Federal Circuit stayed an injunction granted in October by the U.S. District Court for the District of Massachusetts. The stay allows Cingular Wireless L.L.C. and other customers to continue using BCGI’s technology, which provides billing services for prepaid users.
The Massachusetts-based developer suffered a potentially devastating blow earlier this year when the district court ruled the company had infringed on two patents held by Freedom Wireless L.L.C. Freedom was awarded $128 million in damages, and has since ordered BCGI to pay more than $35 million more to cover additional revenues.
BCGI’s stock jumped 23 cents per share to $1.14 in mid-day trading following the news. The stock had neared $10 a share before May’s ruling that favored Freedom.
BCGI, which has said it will likely be forced to declare bankruptcy if the damages are ultimately upheld, said the stay allows it to continue to do business while it appeals the original ruling. The company said the appeal process could take a year or longer.
“We are happy that the appeals court has stayed the injunction,” said E.Y. Snowden, BCGI’s chief executive officer. “With this decision in our favor, we are now on solid footing to continue to pursue our appeal.”
