Skip to content

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved.

Redbubble share price: where next following $520k jury verdict?

The Redbubble share price fell on Friday after providing the market with an update on litigation proceedings brought against it in the US.

Redbubble share price: where next following $520k jury verdict? Source: Bloomberg

Redbubble (ASX: RBL) on Friday provided the market with an update on the progress of US litigation proceedings.

The news was mixed.

Redbubble said a US jury had found the company’s US subsidiary liable for $520,000 – payable to teen retailer Brandy Melville – relating to the allegation of intellectual property infringement.

Litigation background

Initated back in 2019, teen-focused retailer Brandy Melville launched a lawsuit against the ASX-listed Redbubble in relation to the claim that the company infringed the company's intellectual property through the creation of counterfeit goods.

At the time, The Fashion Law reported that Brandy Melville was seeking ‘compensatory damages of three times its actual damages or three times Redbubble’s profits, whichever is greater, together with its attorneys’ fees.’

In addition to that, the company was also reported to be vying for ‘statutory damages of no less than $2 million per registered mark.’

While the $520,000 awarded by the jury is a far-cry from that initial claim, Redbubble nonetheless said it would continue to defend itself against these allegations.

As the company explained in the Litigation Update to the ASX, dated 24 June, 'in US court proceedings, this is but one step in the overall litigation and number of possible steps remain before the claim is finally concluded.'

Redbubble added that the company 'believes that certain critical findings were not supported by the evidence offered at trial and will be asking the court for relief from the verdict on that basis. Redbubble remains confident in its position and will continue to vigorously pursue its defence of the claims.'

IG is a world-leading online trading and investments provider for thousands of financial markets. With CFDs (read about CFDs here), you can buy long or sell short on Redbubble and other e-commerce stocks depending on whether you think prices will rise or fall. Start today by opening an IG account.

Redbubble share price

Despite Redbubble’s confidence, the market reacted with uncertainty to the news: the stock was bid some 2% lower in the first-hour of trade, sitting around the $3.40 per share mark at the time of writing.

The last 12-months have been a rollercoaster for Redbubble – for both its shares and the company as a whole.

Overall, covid-19 was a boon for the company, as individuals increasingly turned to e-commerce options for both discretionary and non-discretionary purchases. While the severity of the pandemic has abated in 2021, the trends which saw consumers flock to e-commerce stores have mostly remained in place.

As part of Redbubble's third quarter trading update, released in April, the company reported continued top and bottom-line growth.

For the three months ending March 31, the company reported marketplace revenue of $456 million (+97%), gross profits of $184 million (+114%) and earnings (EBIT) of $41 million, up from a loss of $12 million during the prior corresponding period.

The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.