Netlist shares tumbled 20% to $5.32 following the decision. Despite the steep decline, the company remains significantly ahead for the year, with its stock price having more than quintupled since January. The court’s rejection centered on technology aimed at increasing the performance and capacity of memory boards featuring dual in-line modules.

This legal setback arrives as Netlist intensifies its broader enforcement strategy. Earlier this year, the company initiated proceedings at the U.S. International Trade Commission against Micron and several other technology entities. Those efforts seek to secure exclusion orders that would effectively block allegedly infringing memory products from entering the U.S. market.