ADTRAN settles patent dispute with payment received from plaintiff

ADTRAN Holdings Inc. (NASDAQ: ADTN) announced it reached a settlement in a patent litigation case that resulted in payment to the company and dismissal of all claims with prejudice.

The case was initiated in 2020 by a non-practicing entity that asserted five patents against ADTRAN. The litigation was transferred to the US District Court for the Northern District of Alabama in 2021 following a motion by ADTRAN.

ADTRAN filed counterclaims, including bad-faith patent assertion under Alabama statutory law. The settlement includes payment to ADTRAN to resolve its counterclaims, though the terms of the agreement remain confidential.

"This outcome reflects a disciplined and consistent approach to protecting our innovation and our customers," said Justin Ferguson, senior vice president and general counsel at ADTRAN. "We take all claims seriously, but we will not hesitate to defend ourselves when assertions lack merit."

The company stated it will continue to respond to patent assertions it considers meritless and pursue available remedies when it believes claims are brought in bad faith.

ADTRAN Holdings is the parent company of ADTRAN Inc., which provides networking and communications solutions. The company is also the majority shareholder of ADTRAN Networks SE.

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