Shares in Unix company SCO have plummeted, following a judge's decision to uphold an earlier ruling to throw out the majority of the company's legal case against IBM.
SCO has been embroiled in a court battle with IBM for three years, since it claimed that IBM's contributions to Linux infringed its Unix code.
IBM succeeded in convincing a US court back in July that the scope of SCO's claims was too broad, causing two-thirds of its case to be dropped. SCO appealed, but the appeals judge on Wednesday upheld the decision. The judge stated that SCO had failed to produce any evidence to back up its intellectual property claims.
Now SCO's investors — many of whom bought into the company anticipating a large payout from the IBM case — have rapidly started selling shares in the company, causing the software firm's market value to plummet 39 percent on last Friday's trading.