Boston Communications Group Explained

Boston Communications Group, Inc., more commonly called bcgi, was one of the largest prepaid mobile phone companies in the United States until 2007. In 2005, they settled a patent lawsuit brought by Freedom Wireless, a private intellectual property firm based in Phoenix, Arizona. bcgi and its co-defendant had lost a jury trial, which awarded Freedom $128 million in damages. The co-defendants agreed to collectively pay $87 million, of which bcgi's share was $55 million.[1] The stock price jumped from $2.09 to $4.01 upon news of the settlement, because the lawsuit threatened to drive the company into bankruptcy.[2]

On July 12, 2007, Megasoft Ltd. of Hyderabad, India agreed to purchase bcgi in a tender offer, which was settled a few months later.[3]

Notes and References

  1. Web site: Cell Phone Billing Company Reaches $87M Settlement in Patent Case . Law.com . 2010-05-18.
  2. Web site: TSC Staff . Boston Pops | Telecom | Financial Articles & Investing News . https://archive.today/20130204123157/http://www.thestreet.com/newsanalysis/techtelecom/10298639.html . dead . 2013-02-04 . TheStreet.com . 2006-06-30 . 2010-05-18 .
  3. News: Indian firm to buy BCGI for $65m - The Boston Globe . Boston.com . 2007-07-12 . 2010-05-18 . Robert . Weisman.