Hexaware shares gain 4% after US court dismisses key patent claims

Shares of Hexaware Technologies Ltd. surged more than 4% on Friday, June 12, after the company disclosed a favourable development in an ongoing legal dispute in the United States.

In an exchange filing, Hexaware said that the United States District Court for the Northern District of Illinois has dismissed the federal patent-related claims against the company.

The court agreed that the patent claims in question were not eligible for patent protection, concluding that they related to abstract subject matter.

With the dismissal of these federal patent claims, the principal allegations underpinning the litigation have effectively been set aside.

The court also declined to exercise jurisdiction over the accompanying state law claims, including contractual and business-related allegations. As a result, those claims have been dismissed at this stage without a ruling on their merits.

However, the plaintiffs have been granted an opportunity to submit an amended complaint within the prescribed timeline.

Hexaware said it will continue to closely monitor the matter and take appropriate action as required.