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 (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.

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired

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

liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

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.