Microsoft Stock Rises as Appeals Success Expected
Shares in Microsoft Corp. rose Wednesday amid speculation that the company is likely to prevail in its effort to have its appeal of its antitrust conviction heard by an appellate court that has previously ruled in the company’s favor.
The software giant said Wednesday it plans to file formal objections early next week to the U.S. government’s attempt to have the appeal fast-tracked directly to the U.S. Supreme Court.
Shares in Microsoft rose $2.63 to close at $70.50 in Nasdaq trading.
The company also received a favorable ruling Wednesday from an Oregon state judge, who dismissed a lawsuit claiming consumers paid too much for Microsoft’s Windows 98. The Oregon ruling gave the software maker one of its first victories in a string of consumer antitrust suits.
Microsoft officials applauded the Oregon ruling, but said the company’s legal efforts remain focused on preparing for its appeal of the antitrust conviction and order from a federal judge that Microsoft be broken in two.
The company on Tuesday asked the Court of Appeals to stay that order, which also requires a number of restrictions on its business practices that are due to take effect Sept. 6.
The Court of Appeals, while remaining silent on whether to hear Microsoft’s motion, issued a statement saying any proceedings would be fast-tracked if the court gets the case. In an unusual step, the appeals court, citing the “exceptional importance” of the case, also said all seven of its eligible judges would hear the case rather than the usual three-judge panel followed by a full hearing.
Microsoft feels that it will get a more favorable hearing in the Court of Appeals, which has previously ruled for the company, and reversed Jackson’s rulings. The company’s planned Monday filing would outline the company’s objections to taking the appeal directly to the Supreme Court.
“Microsoft does not believe that the government should try to evade the Court of Appeals,” said Microsoft spokesman Jim Cullinan. “Given the vast array of factual, legal and procedural errors . . . we believe the Court of Appeals is the proper venue.”
Legal experts said Microsoft’s jockeying so far has been deft.
“[Microsoft] succeeded in taking the initiative on appeal,” said William Kovacic, an antitrust expert at the George Washington University School of Law in Washington. “I don’t think the government really thought through all of the possible scenarios, and Microsoft ended up outmaneuvering them.”
The Justice Department has asked U.S. District Judge Thomas Penfield Jackson, who found Microsoft guilty of breaking antitrust law, to fast-track the appeal to the Supreme Court, saying the significance of the case warranted special treatment.
On Wednesday, the Justice Department also filed papers with the appellate court asking it to dismiss the company’s motion asking that it stay Jackson’s order breaking up the company.
In a nine-page brief, the department called Microsoft’s motion to the appellate court “premature” and said the company was violating a rule requiring that it first give the district judge an opportunity to rule on its stay request with his court.
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