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Chapter 108 Litigation Delay Tactics

During the two days of the New York Stock Exchange's weekend market closed, two major events related to AT&T. The first is that the American Natural Science Foundation announced the establishment of five supercomputing centers in the United States, and any user can connect to these five supercomputing centers through specific network protocols to share their powerful computing power. As soon as this news came out, various universities and research institutes across the United States were excited. Many famous universities planned to apply for the service with telecom operators that provide network connection services. This news came just right. Many investors holding AT&T stocks in their hands were laughing from ear to ear after learning the news. They could not wait to know what price the AT&T stock price would rise under the guidance of good news next Monday.

However, these investors' good mood only lasted until Sunday night, and they were soon hit by another news. Just less than 12 hours before Monday's opening, many Wall Street investors received the latest news from Bloomberg News. On Sunday afternoon, Yota Communications had filed a lawsuit in the district court of San Jose, where Cisco's headquarters was located, suing Cisco for infringing on a total of seven patented technologies for network solutions, and requesting the court to immediately ban all related products from Cisco's products from the market. As Yota Communications' lawyers provided sufficient evidence that Cisco's products had serious infringement, the San Jose District Court adopted Yota Communications' proposal and officially announced that it would temporarily ban Cisco's products from being sold publicly on the California market.

Many people only saw this news before falling asleep. When Wall Street fund managers who ate in large quantities during these days saw this news, they could no longer fall asleep.

At nine o'clock on Monday morning, the New York Stock Exchange had just opened. The stock price of ATTL immediately turned downward and instantly fell 13% of its market value. Motorola's stock began to fall sharply. This sudden lawsuit left ATTL without preparation, and they applied for a suspension from the New York Mercantile Exchange. However, the suspension could not prevent the losses of ATTL from ending. Investors were suspended and could not sell ATTL stocks, and immediately concentrated all panic on Motorola. After ATTL announced the suspension of trading at midday, the decline of Motorola and the company's stocks expanded to 14% at the opening of the afternoon. Many investors who had eaten up Motorola's stocks not long ago were immediately devastated.

The CEO of AT&T, along with the head of Motorola, flew to San Jose on a special plane that afternoon, and various financial reporters rushed to San Jose to inquire about this intellectual property lawsuit involving a hundred billion investment.

The legal procedures in the United States are extremely complex and cumbersome. Before the formal trial, the judge will convene lawyers from both sides to attend the pre-trial meeting to determine the focus of the dispute between the two sides, jury, evidence and other specific issues involved in the court trial. It records that at this pre-trial meeting, the lawyer representing Yota Communications submitted 300,000 pages of evidence to the court. This information almost filled the judge's office, and it would probably take a month to finish reading it, and even the judge couldn't help but take a breath. In addition, the lawyers of Yota Communications also spoke loudly, asking Cisco to compensate Yota Communications for as much as $7 billion. This number excited the media who have been waiting outside. This number can definitely be ranked among the top ten in the amount of litigation in the United States.

The San Jose District Court's injunction is only valid for a few weeks, and its scope is limited to California. After the injunction expires, the court will determine whether the injunction will be continued. This has long been calculated by the scheming Peterson, so after the first lawsuit was initiated, Yota Communications began to blossom in many US states according to the strategy set by Peterson, and continued to file lawsuits with the court again and again.

Although these lawsuits were initiated in district courts in various states, the United States is a case bill. As long as Yota Communications wins one of these lawsuits, Cisco's products will not be sold publicly in the US market.

Eva can finally breathe anger. For some time, Eva has been bullied by these capitalists on Wall Street, and now it is these capitalists' turn to be heartbroken. Thanks to Sheryosha's special attention to patents at the beginning of the company's establishment, Yota's legal department has not been compressed or even streamlined. Now these efforts have been rewarded. Yota Communications' legal department has silently established a moat that its competitors cannot cross.

Blackstone partner Schwartzman went to New York with Eva again after the lawsuit was initiated. Schwartzman has now convinced Eva to introduce new investors in Iridium. So he intends to use his relationship on Wall Street to find out if there are strong investors willing to participate in Eva's Iridium project.

Schwartzman and Eva both came from prestigious schools, but Swatz joined the Skeleton and Bones Club when he was at Yale, and then went to Harvard Business School after graduation. His skills were much better than Eva who graduated from medical school. After a series of communication and discussions, Schwartz first won over his old boss, Lehman Brothers. Because AT&T has been suspended now, and the cost of Motorola's shares in AT&T is too high, and AT&T's acquisition of Motorola comes from high interest rate financing on Wall Street. If this falls, AT&T will lose its position. However, for the remaining shareholders who have held Motorola for many years, Motorola's favorable foundation no longer exists. Taking advantage of the fact that the stock price has not yet fallen back to the pre-liberation liberation, they can still make a stable profit, so they do not want to suspend trading.
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