Shares of

SCO Group

(SCOX)

, the little software maker that has taken on the Linux open-source movement, sank Thursday after a judge threw out most of a lawsuit against

DaimlerChrysler

(DCX)

.

Shares of SCO recently declined 38 cents, or 8.2%, to $4.25. That's about 81% below its 52-week high of $22.29, signaling investors may be losing faith in the Lindon, Utah-based company's Linux battle. In another indication of Wall Street's skepticism, the short interest in SCO reached a staggering 54.5% of the float as of June 15, according to

Nasdaq

; that short interest was 21.6 times the average daily volume of the stock vs. a days-to-cover ratio of around 2 a year ago.

On Wednesday, a Michigan judge dismissed most of the suit filed by SCO against DaimlerChrysler, wire services reported. The case was one of two suits filed by SCO against Linux users, charging that they did not comply with copyright laws and software agreements with SCO.

DaimlerChrysler has since complied with terms of its software agreement with SCO, SCO spokesman Blake Stowell told the

Associated Press

. He said the company is considering whether to appeal.

SCO first launched its campaign against Linux last year in a suit against

IBM

(IBM) - Get Report

. SCO has maintained that the Linux operating system is using Unix software code, to which SCO says it owns the copyrights.