Informix Corp. (Nasdaq:IFMX) fell 11 percent Tuesday after the maker of database and other business software said International Business Machines Corp. (NYSE: IBM) has filed a lawsuit against it.
Shares in the Menlo Park, California-based company were down 1 7/8 to 14 5/8 Tuesday, with over 7.5 million shares trading hands. The stock had been rising recently, as the company had acquired Cloudscape Inc for its Java-based products including software that lets remote users connect to corporate databases.
IBM has accused the company of patent infringement. Informix strongly believes the allegations in the suit, filed in U.S. District Court in the District of Delaware, are ``utterly devoid of merit,'' the company said.
Informix said it intends to defend the action vigorously and to possibly launch a counter suit.
Reuters contributed to this report.