Shareholders have filed a class-action lawsuit against chipmaker Transmeta, alleging that company executives made false statements about its business and certain products to boost its stock price. Announced Tuesday, the lawsuit alleges that in connection with Transmeta's initial public offering and continuing to June 20, the company made misleading statements about its Crusoe family of microprocessors, including overstating the battery life. New York-based law firm Milberg, Weiss, Bershad, Hynes & Lerach is handling the suit.
The chipmaker denies any wrongdoing. "Transmeta has seen rumors of a shareholder lawsuit in the media, but has not been served with an actual complaint," Transmeta spokesman Phillip Bergman said. "The rumored lawsuit is without merit, and the company will vigorously contest it."