NEW YORK (TheStreet) -- Groupon (GRPN - Get Report) shares are soaring 5.34% to $3.55 on Tuesday afternoon as the online marketplace is suing International Business Machines (IBM) in federal court for infringing a December 2010 software patent.
The suit, filed Monday in U.S. District Court in Chicago, alleges that IBM's WebSphere Commerce platform infringes on a patent that Groupon holds, Reuters reports.
As the going battle between the two companies continues, Groupon's lawsuit comes two months after IBM sued the company, accusing it of infringing on four of its software patents.
"IBM is trying to shed its status as a dial-up-era dinosaur" by infringing the rights of "current" technology companies such as Groupon, Groupon spokesperson Bill Roberts told Reuters.
In response to the suit, IBM commented, "IBM filed a suit against Groupon in March for unauthorized use and infringement of IBM intellectual property. We believe this counter suit is totally without merit."
Separately, TheStreet Ratings currently has a "Sell" rating on the stock with a letter grade of D.
The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, disappointing return on equity, weak operating cash flow, generally disappointing historical
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.
You can view the full analysis from the report here: GRPN