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IRVINE, CA - Memory technology company Netlist, Inc. (OTCQB:NLST), a $203 million market cap company with annual revenues of $140 million, has filed a new legal action against Samsung, Micron, and their distributor Avnet, Inc. in the U.S. District Court for the Eastern District of Texas, the company announced Tuesday. InvestingPro analysis indicates the stock appears slightly undervalued at its current price of $0.70.
The lawsuit alleges infringement of U.S. Patent No. 12,373,366, which covers power management circuitry used in DDR5 DIMM memory products. The patent, titled "Memory with On-Module Power Management," will expire in June 2028.
"Netlist continues to expand its portfolio of patented memory technologies, including patents that read on DDR5 DIMMs," said C.K. Hong, Netlist’s Chief Executive Officer, in a press release statement.
This legal action follows Netlist’s recent courtroom victories against the same companies. Over the past two years, the company has secured jury verdicts awarding a combined $866 million in damages for willful patent infringement by Samsung and Micron. While analysts maintain a Strong Buy rating with a $2.00 price target, InvestingPro data shows the company’s overall financial health score is currently weak at 1.53 out of 5.
DDR5 memory modules represent the latest generation of Double Data Rate memory used in servers and personal computers. According to the company, analysts project U.S. DDR5 annual revenue to reach $30 billion by 2028.
Netlist, which describes itself as an innovator in advanced memory and storage solutions, has retained Irell & Manella LLP for legal representation in the case, with Jason Sheasby leading the legal team.
The company trades on the OTCQB exchange under the ticker NLST. With its next earnings report due in 9 days on August 7, 2025, investors can access comprehensive analysis and additional insights through the detailed Pro Research Report available on InvestingPro.
In other recent news, Netlist, Inc. has made several noteworthy announcements. The company has amended its patent infringement complaints against Samsung and Micron, adding a second patent and including distributor Avnet, Inc. as a defendant. This legal action involves their DDR5 DIMM products and follows a previous complaint regarding High-Bandwidth Memory products. Additionally, a federal court upheld a $445 million jury verdict against Micron in a separate patent infringement case favoring Netlist, effectively closing the case at the district court level.
Netlist has also announced a $12 million registered direct offering, selling 17,142,860 shares of common stock and warrants to purchase up to 34,285,720 additional shares. The purchase price is set at $0.70 per share, with warrants exercisable at the same price. Furthermore, the company has strengthened its board by appointing Jun S. Cho and Blake Welcher as independent directors. These developments reflect significant legal, financial, and governance activities for Netlist.
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