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Digital Ally shares tank on adverse ruling in patent case

The US District Court ruled that Digital’s patent on its automatic activation technology had not been infringed by Axon

Digital Ally equipment
The Lenexa, Kansas-based company plans to appeal the decision

Digital Ally Inc (NASDAQ:DGLY) stock is sinking Tuesday, a day after a judge ruled that a patent from the video surveillance tech maker was not infringed by rival Axon Enterprise Inc (NASDAQ:AAXN).

The US District Court ruled that Digital’s patent on its automatic activation technology had not been infringed by Axon and granted its motion for summary judgement. The Lenexa, Kansas-based company plans to appeal the decision.

Digital’s share price plunged 42% to $1.66 Tuesday in afternoon trade, as shares in rival Axon also slipped nearly 1% to $67.52.

WATCH: Digital Ally Inc talks about its video and software solutions, used in emergency management

Despite its ruling, the Court did not find that Digital’s ‘452 patent was invalid, or whether its requested damages were appropriate.

“We are certainly disappointed with the Court’s misreading of our patent rights, but we remain confident that the ruling will be reversed on appeal,” said CEO Stanton Ross. “Axon misled this Court and convinced the judge to take an overly narrow view of our patent. We highly doubt the Court of Appeals for the Federal Circuit will be similarly misled.”

Contact Andrew Kessel at [email protected]

Follow him on Twitter @andrew_kessel

Quick facts: Digital Ally

Price: 3.2 USD

NASDAQ:DGLY
Market: NASDAQ
Market Cap: $85.06 m
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