Penny stock, Beyond Meat (BYND), climbed about 20% on Wednesday, even after the plant-based meat maker was ordered to pay $38.9 million in damages in a trademark infringement case. The company said it will appeal the ruling, a move that appears to have reassured some investors betting on its long-term prospects.
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The stock is also up due to a surge in demand for call options, particularly those with short-term expiration dates. According to Sherwood News, call option volume topped 200,000 by 11 a.m. ET, exceeding the typical 20-day session average of 194,098.
Trademark Battle Ends in $38.9 Million Verdict
A Massachusetts federal jury found Beyond Meat liable for infringing on Sonate Corporation’s trademark “WHERE GREAT TASTE IS PLANT-BASED” through its use of similar taglines, including “Great Taste Plant-Based” and “Plant-Based Great Taste.”
The case dates back to April 2022, when Sonate filed suit against Beyond Meat and Dunkin’ Brands in Florida. Dunkin’ settled and exited the case in late 2024, leaving Beyond Meat to face trial after the case was transferred to Massachusetts in 2023.
Beyond Meat argued that its taglines were descriptive and fell under “fair use.” However, the jury rejected that defense after a two-week trial, awarding $23.5 million in actual damages and $15.4 million in disgorged profits.
What Is the Future of BYND Stock?
Turning to Wall Street, BYND stock has a Strong Sell consensus rating based on one Hold and four Sells assigned in the last three months. At $0.93, the average Beyond Meat stock price target implies an 8.82% downside risk.
