Netlist Stock Jumps Wednesday: What's Happening?

Netlist Inc (OTCQB:NLST) shares are surging Wednesday. The U.S. International Trade Commission formally confirmed it voted to institute a Section 337 investigation into Micron and several other companies over alleged DRAM patent infringement. Here’s what you should know. Netlist shares are powering higher. What’s driving NLST stock higher? USITC Formally Announces Institution Of The Investigation The USITC confirmed Wednesday in an official release that its commissioners had voted to open a formal probe into DRAM memory devices and the products built using them, tying the announcement back to a complaint Netlist brought last month. Netlist filed the original complaint on Aug. 11, with a supplement following on Aug. 25, alleging that Micron Technology Inc (NASDAQ:MU) and several other companies violated federal trade law by importing and selling memory products that infringe on patents Netlist holds. Micron Technology, Micron Semiconductor Products, Hewlett Packard Enterprise, Lenovo Group, Lenovo’s U.S. subsidiary, and Super Micro Computer are all named as respondents. Netlist is seeking a limited exclusion order and cease-and-desist orders, remedies that could block the named companies from importing or selling the affected products in the U.S. What Happens Next in the Case Today’s confirmation doesn’t settle anything on its own. The commission has explicitly noted that voting to open the investigation carries no judgment on whether Netlist’s underlying claims actually hold up. From here, the matter lands with the USITC’s Chief Administrative Law Judge, who picks which judge on the commission’s roster will run the case, hold an evidentiary hearing, and ultimately issue a first-round ruling on whether the law was actually broken. That ruling doesn’t stand alone, either. The full commission gets a chance to review it before anything becomes final. Regulators also face their own clock here: they have 45 days from today to lock in a target completion date for the whole investigation. Once any penalties get handed down, those take hold right away but only become permanent after a 60-day window closes. During that window, the U.S. Trade Representative retains the ability to override the outcome on policy grounds. NLST Shares Are Soaring NLST Price Action: NETLIST shares were up 12.74% at $5.94 at the time of publication on Wednesday, according to Benzinga Pro. Read Also: Amazon, Apple, Micron, Check Point Software On CNBC’s ‘Final Trades’ Image: Zakharchuk/Shutterstock