Qualcomm Executives Minimized Antitrust Threats — and How Investors Could Still Win

Court: S.D. California

Case: 3:17-cv-00121

Qualcomm QCOM has agreed to a $75 million settlement with investors who accused former CEO Paul Jacobs, ex-CEO Steve Mollenkopf, and other top executives of misleading them about the company’s licensing model, regulatory risks, and dependence on Apple.

The settlement closes years of litigation marked by Qualcomm’s bold claims about its business, while regulators and key partners raised red flags.

The Confidence Game Behind Qualcomm’s Licensing Model

From 2012 through 2017, Qualcomm’s executives reassured investors that its licensing practices were fully compliant and sustainable. Management insisted that Qualcomm’s dominant position in mobile chips and standard-essential patents made its royalty model unassailable.

However, executives allegedly downplayed escalating risks from global regulators — including antitrust investigations in China, South Korea, the U.S., and Europe. They also misrepresented the fragility of the company’s reliance on Apple, claiming the relationship was solid even as tensions over licensing fees were boiling.

Internally, Qualcomm was facing what one insider called “a perfect storm of regulatory threats and customer pushback”. By January 2017, Apple had sued Qualcomm directly, accusing it of abusing monopoly power, and regulators had launched multiple high-profile cases.

Investors Call Out the Storyline

Despite this, Qualcomm’s stock remained buoyed by executive assurances. CFO George Davis told analysts that licensing disputes were “business as usual,” while Mollenkopf claimed regulatory actions would have “no material impact.”

But, between 2015 and 2017, antitrust fines and litigation multiplied, Apple withheld billions in royalty payments, and Qualcomm’s licensing revenue plunged.

The company’s market value fell sharply, and investors realized that the very foundation of its profits — charging royalties on nearly every smartphone sold — was under siege.

After all of this, investors filed a lawsuit alleging that executives had concealed the seriousness of regulatory threats and misled shareholders about the risks of losing Apple, artificially inflating Qualcomm’s stock until the truth emerged.

A $75M Deal to Compensate Shareholders

Now, after seven years of litigation, Qualcomm has agreed to a $75 million settlement. While the company and executives deny any wrongdoing, the deal offers investors a path to recover losses.

If you purchased QCOM, you may still be eligible to claim compensation. Even if you missed the original deadline, late claims are being accepted. Investors can check eligibility and file a claim here.