Vringo had old patents that it was going to use to nuke Google, therefore Google "might be going to $0." When Altucher made his call Vringo was trading around $1.65.
Altucher soon gained a big backer when Mark Cuban said he was buying a 7 percent stake Vringo. At that point, the stock was trading around $3.00. Cuban's reasoning for buying Vringo stock was that the patent system is a mess, and if Vringo could cause serious damage, then the patent system would be reformed.
Well, today was a big day for Vringo, Altucher, Cuban, and all the other folks who piled into the stock. And, it's not looking great for their big plan to kill Google and spur major patent reform. However, they are going to do well on their investment.
Vringo is going to get $30 million in patent fees. Vringo was looking for $493 million, according to the Wall Street Journal.
According to Reuters, here's how it all shakes out: "Google to pay $15.8 million, AOL $7.9 million, IAC/InterActiveCorp-owned IAC Search & Media $6.6 million and Gannett Co Inc $4.3 million." It's also going to get a running royalty until 2016, which should be worth a few million dollars per year.
Vringo's stock was down 10 percent today to $3.57.
If you are James Altucher, you did pretty well. (Assuming he sells today.) If you merely listened to Altucher and bought it the first day you could, well, you di pretty well, too. Vringo is up 15% since April 2.
And if you shorted Google, well, that was a mistake. The stock is up 5% since Altucher's call.
Source: http://www.businessinsider.com/vringo-patent-lawsuit-2012-11
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