Hello.
Is it possible they did not respond because there is a potential settlement being discussed?
It's highly unlikely, in my opinion, that they didn't respond because there is a potential settlement being discussed. Anything is possible of course, but PM has now managed to have the case dismissed, subject to this pending motion to revive the case by HCMC. PM also has a path to invalidity of the patent in the PTAB and also, even if Judge Batten allows HCMC to amend the complaint (which i hope he does), PM also has numerous paths to invalidity in the district court case as well. Therefore, I see it as highly improbable that PM would settle at this stage because of the this lawsuit. If I were in PM's shoes, I would be feeling very comfortable. They have Cozen clearly outmatched and they should; on a reputational basis, PM's lawyers are better. Cozen will need to work twice as hard. So far, they botched the opposition to the Motion to Dismiss and decided not to respond to the IPR petition. It looks like Cozen is working half as hard.
The only way I could see a settlement happening at this stage is if PM decided they needed the patents for some offensive tool against other competitions, such as BAT. But I doubt PM would settle due to the case itself. It is going very well for them so far. That fact is undeniable.
Is it also possible PM deliberately hinted at a deal to cause HCMC to miss the deadline?
Normally I would say no good lawyer would be fooled by such a ploy and that a good lawyer would either ask for an extension to iron out a settlement or file all papers when due until settled. So in my opinion, this would not be likely, but who knows what is going on in Cozen's head. As you say it is hard to figure out what Cozen is or isn't doing, but the simplest explanation here is that they chose not to respond and did it because they did not feel a response was necessary.
According to your thinking this delay should not have happened in the first place, HCMC should have responded one way or the other.
I feel that a good lawyer should always take the opportunity to get the last word in if they have they chance. Cozen had the chance here in the PTAB, but decided not to do it. That is a mistake in my opinion. Never let your opponent have the last word if you can avoid it. Now PM as the last word and the only word.
Cozen also made another colossal error. If they weren't going to respond, they could have waived the right to respond by telling the PTAB months ago that they were not going to respond. That would have had the effect of speeding up the clock and we could have been getting a decision from the PTAB now. Now we have to wait another three months unnecessarily. It is just more lazy and stupid in my opinion.
Did HCMC have other better choices than Cozen?
Of course. With 27M in the bank now, they have many options. Maybe they didn't have that before.
Let's not forget the role that Jeff Holman is playing in this negligence. Is he going to spend any of that money on the litigation because from what I can see he is not spending enough of that money that he took from the investors on the litigation itself. Fine, don't buy back shares, I get it. But if he believes that the litigation is a way forward for the company, then pay some good lawyers to do some good lawyering. Instead he is apparently hoarding cash and the lawyers are not doing what they should be doing.
I am losing faith, but with the stock price where it is, nothing to do by hold at this point. A reverse split will do nothing for me. HCMC needs to start winning something. All that is mounting are the losses and the negligence.
