Shares of Qualcomm Inc. closed 5 percent higher on Dec. 2, the same day that Qualcomm said it signed a new technology licensing agreement with Xiaomi, the China-based wireless device and Internet company.
Qualcomm (Nasdaq: QCOM) shares closed up 5.17 percent at $51.85.
The gain contrasted with the market in general. The Dow Jones Industrial Average closed down 158 points, or almost 1 percent, on Wednesday.
The San Diego wireless tech company said early Dec. 2 that it granted Xiaomi a royalty-bearing patent license to develop, manufacture and sell third-generation wireless devices using the WCDMA and CDMA2000 communication standards, as well as fourth-generation wireless devices. The deal includes three-mode devices — unique to China — which use technologies called LTE-TDD, TD-SCDMA and GSM.
Qualcomm said the new royalty rates are consistent with those recently negotiated with Chinese regulators.
Shareholders have been impatient with how quickly Qualcomm is taking in royalties from Chinese licensees while the parties are negotiating new pacts. Some are reportedly withholding their royalty payments.
Investors traded some 36.5 million Qualcomm shares on Wednesday. That is roughly three times the daily average reported by Yahoo Finance.
In other news, several law firms announced Dec. 1 and 2 that they filed shareholder class-action lawsuits against Qualcomm or were investigating the company. Law firms generally file such suits when a stock loses value.
The firms include Bronstein, Gewirtz & Grossman LLC of New York; Goldberg Law PC of Marina Del Rey; Levi & Korsinsky LLP of New York; and Rosen Law Firm of New York. In addition, the Briscoe Law Firm PLLC and Powers Taylor LLP, both of Texas, said they were pursuing an investigation.
Bronstein Gerwitz said it was seeking investors who held Qualcomm shares between Nov. 6, 2014 and July 22 of this year. Shares traded in the $60 and $70 range during that period.
Bronstein Gerwitz said its complaint “alleges that throughout the class period, defendants made false and/or misleading statements and/or failed to disclose (i) Qualcomm was experiencing weaker-than-expected sales of devices that included Qualcomm’s products; and (ii) as a result, Qualcomm’s statements about its business, operations and prospects lacked a reasonable basis.”