VirnetX enters cooperation agreement with Bradley Radoff and Michael Torok

In conjunction with the special cash dividend, VirnetX (VHC) entered into a cooperation agreement with Bradley Radoff and Michael Torok and certain of their respective affiliates, who collectively own approximately 6.6% of VirnetX’s common stock. As part of the agreement, VirnetX committed to promptly distribute to shareholders 80% of future proceeds, if any, and net of related legal costs, licensing costs and taxes, that it receives from its current litigation with Apple (AAPL). During 2021, Apple appealed a 2020 U.S. Federal District Court jury verdict that awarded VirnetX over $500M in damages. Oral arguments for this appeal were heard by the U.S. Court of Appeals for the Federal Circuit in September 2022. VirnetX has also agreed to further strengthen its Board of Directors through the selection and addition of another independent director within the next 12 months who will help improve diversity in the boardroom.