LAS VEGAS, NV - Rimini Street (NASDAQ:RMNI), Inc., a provider of business services with a market capitalization of $238 million, announced today that the United States Court of Appeals for the Ninth Circuit has issued an opinion on the company's appeal concerning a legal matter from July 2023.
The development follows a judgment and injunction entered in the case known as Rimini II, which was filed in the United States District Court for the District of Nevada. The news comes as the company's stock has shown significant momentum, posting a 24.17% return over the past week.
The appellate court's opinion, dated Monday, December 16, 2024, has been attached as Exhibit 99.1 to the company's 8-K filing and is now incorporated into the public record. Rimini Street, which is headquartered in Las Vegas, Nevada, and incorporated in Delaware, has reserved all rights to appeal in the Rimini II litigation.
According to InvestingPro analysis, the company maintains a 'Fair' overall financial health score, with particularly strong metrics in relative value assessment.
This news comes as part of a regulatory disclosure, with Rimini Street indicating no obligation to update the information provided. The company also referenced its Quarterly Report on Form 10-Q for the quarter ended September 30, 2024, for more detailed information and disclosures related to its ongoing litigation with Oracle (NYSE:ORCL).
The information disclosed under Item 7.01 in the 8-K filing is not considered "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 and is not subject to its liabilities, except as expressly stated by the company or incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act.
The recent court opinion and the company's response highlight the ongoing legal challenges faced by Rimini Street. The company's stock, listed on the Nasdaq Global Market under the ticker symbol NASDAQ:RMNI, may be influenced by the outcomes of such litigation proceedings. InvestingPro data indicates the stock is currently trading below its Fair Value, with additional insights available in the comprehensive Pro Research Report, which covers over 1,400 US stocks.
The details of the appellate court's opinion are available for public review, and Rimini Street's 8-K filing provides the necessary context for understanding the current status of the litigation. This news is based on the company's statement in the SEC filing and does not include any additional analysis or commentary.
Investors seeking deeper insights can access detailed financial metrics and eight additional ProTips through InvestingPro, including analysis of the company's revenue valuation multiples and profitability outlook.
In other recent news, Rimini Street, a global provider of enterprise software products and services, has reported mixed financial results for the third quarter of 2024. The company's revenue decreased slightly to $104.7 million, marking a 2.6% decrease year-over-year.
Alongside this, the company faced a net loss of $43.1 million and incurred litigation costs of $58.5 million. Despite these challenges, Rimini Street has shown signs of proactive growth strategies, including establishing a strategic partnership with ServiceNow (NYSE:NOW) and extending support for VMware (NYSE:VMW).
In addition, the company is implementing a cost optimization plan targeting $35 million in annual reductions. However, due to ongoing litigation, Rimini Street has suspended future financial guidance, adding an element of uncertainty to its outlook. The company's annualized recurring revenue also decreased by 3.6% to $401.5 million, while billings showed a 7.7% increase to $65.2 million compared to the previous year.
These recent developments indicate a company navigating through a challenging period but remaining focused on strategic partnerships, service expansions, and cost optimization. As Rimini Street continues to adapt its business model and offerings, the market will closely follow its progress.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.