After one of the worst weeks in Qualcomm Inc.'s history, the embattled cellphone chip maker may be ready to put down its swords.
General Counsel Lou Lupin, a 12-year veteran who led Qualcomm's courtroom attacks on competitors, resigned Monday in the aftermath of three bruising legal defeats.
Carol Lam was named acting general counsel. The former U.S. attorney for San Diego was one of eight federal prosecutors whose firings by the White House last year prompted congressional hearings and calls for the removal of Atty. Gen. Alberto R. Gonzales.
"It's a way of making a statement with other players that Qualcomm is trying to do the right thing -- be a good partner and a good, above-board competitor," said Charles Golvin, principal analyst with Forrester Research.
San Diego-based Qualcomm did not give a reason for Lupin's departure, other than to say the decision was his and "a personal one."
The company said his exit would "not affect Qualcomm's legal strategy."
But the company's shares rose nearly 3% to $38.92 after the announcement, suggesting that investors believed otherwise and were looking for a change in the aggressive legal tactics that led to two stinging rebukes by federal judges last week.
"It's not a big stretch to guess that Lou took the hit," said Mark McKechnie, a telecommunications equipment analyst with American Technology Research. "Qualcomm was a bit embarrassed the court held against them essentially for misconduct."
Tuesday, August 14, 2007
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