Market Extra: Imagination shares tank 72% after Apple pulls chip contract — but court battle may lie ahead

Shares of Imagination Technologies Group PLC plunged in London after the chip designer revealed that Apple Inc. will stop using its technology in new products, leading one analyst to suggest a legal battle over patents lies ahead.

Imagination IMG, -59.83% — which designs the iPhone and iPad’s graphics chip — fell by as much as 72% on Monday morning. The shares later trimmed their loss to 63%, but it was still their biggest one-day percentage loss ever, setting the stock on track for its lowest close since 2009.

Apple shares AAPL, -0.19% were marginally lower in premarket trade.

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