VirnetX stock rockets after declaring large special dividend, as positive outcome from Apple litigation nears

Shares of VirnetX Holding Corp.
VHC,
-16.47%
rocketed 22.9% toward an eight-month high, after the internet security software company declared a special cash dividend of $1 a share, which represents 58.8% of the previous session’s closing price of $1.70. Shareholders of record on April 10 will be paid the dividend on April 17. The company also said it entered into a cooperation agreement with shareholders Bradley Radoff and Michael Torok, and certain affiliates, who collectively own 6.6% of VirnetX shares outstanding. As part of that agreement, the company has committed to distributing to shareholders 80% of any future proceeds it receives from its litigation with Apple Inc.
AAPL,
+0.99%
In 2020, VirnetX was awarded $500 million in damages by a U.S. Federal District Court,, but Apple appealed the verdict in 2021. “We are confident that we are close to a final outcome in our litigation with Apple, and the Board has committed to distribute to our shareholders a substantial portion of the net proceeds after the case concludes,” said VirnetX Chief Executive Officer Kendall Larsen. The stock has soared 30.8% year to date through Wednesday, while the S&P 500
SPX,
+0.57%
has gained 4.9%.