plunged 56% early Monday after the wireless billing company lost a patent suit.
The Bedford, Mass., company said a jury found it and some co-defendants liable for at least $128 million in damages in a suit brought by Freedom Wireless. Boston Communications called the damage award "unreasonable,"
reported, and pledged to appeal.
Boston said the entire affair may be its responsibility "since the other defendants have claimed that BCGI is obligated to indemnify them for any damages they incur with respect to any infringement by the Company's technology."
But the company also warned that it may not be able to fund its operations because of the size of the award. Boston Communications said first-quarter prepaid wireless services revenue was $23.9 million, a figure that accounted for 90% of total revenue for the period.
"If the Company is unable to provide adequate collateral or to post a sufficient bond or is enjoined during the appeals process, or if the Company is unable to get an adverse judgment reversed or to negotiate a commercially acceptable license with Freedom Wireless to allow BCGI to continue to provide its products and services, then it will not be possible for the Company to provide the prepaid wireless or Real-Time Billing service bureau as currently offered in the United States," Boston Communications said. "In that event, the Company may not be able to continue its ongoing operations or may need to seek protections under the bankruptcy code."
Early Monday, Boston Communications fell $2.81 to $2.