Rambus Gets More Headwinds

Rambus'(RMBS Quote) settlement of its most contentious legal case sparked its shares 30% higher Monday, but the stock has merely returned to its trading level at the beginning of the month.

While the resolution removes a significant headwind, some investors had hoped for more from the settlement with Infineon Technologies(IFX Quote), which will result in quarterly payments to Rambus of $5.85 million over two years and the possibility of up to $100 million in additional payments.

"Infineon got a steal of a deal," said Michael Cohen, director of research at Pacific American Securities. "Rambus let them off extremely cheap."

That opinion is important because Rambus is still waging a multiyear, multifront legal battle with billions of dollars at stake. It also has legal cases pending against Micron Technology(MU Quote) and Hynix Semiconductor alleging patent infringement, as well as a collusion case that will start soon in San Francisco Superior Court. ...