Qualcomm (QCOM.O), opens new tab, has agreed to pay $75 million to settle a complaint in which shareholders accused the chipmaker of deceiving them by concealing its anticompetitive sales and licensing policies.
On Tuesday, a tentative all-cash settlement was filed in Federal Court in San Diego.
It requires clearance from U.S. District Judge Jinsook Ohta, who certified the claim as a class action in March 2023. Qualcomm and six individual defendants, including former CEOs Paul Jacobs and Steven Mollenkopf, denied misconduct in their settlement agreement.
The San Diego-based corporation did not immediately reply to a request for comment.
Between February 2012 and January 2017, shareholders accused Qualcomm of artificially inflating its share price by repeatedly describing chip sales and technology licensing as separate businesses, despite the fact that Qualcomm bundled them to stifle competition.
In January 2017, the Federal Trade Commission and Apple (AAPL.O) opened new tabs.sued, opens a new tab Qualcomm was charged separately for allegedly attempting to dominate the market for baseband processors, a kind of semiconductor found in cellphones.
Apple said Qualcomm abused its monopolistic position by overcharging for processors and demanding onerous and expensive technology license conditions.
Qualcomm denied the allegations, but its stock dropped 13% on the first full trading day after Apple sued. The case is In re Qualcomm Inc Securities Litigation, U.S. District Court, Southern District of California, No. 17-00121.
