Hedge Fund Sues Transmeta, An Acquisition Target

Law360, New York (February 12, 2008, 12:00 AM EST) -- A hedge fund that wants to purchase Transmeta Corp. is suing the Silicon Valley company derivatively, accusing it of “looting” assets by doling out exorbitant and gratuitous bonuses to the company's lawyer and others after reaching a $250 million patent settlement with Intel Corp. last October.

Riley Investment Management LLC, which along with its clients is Transmeta's largest shareholder, filed a complaint on Jan. 31 in the California Superior Court in Santa Clara County. The next day, Transmeta confirmed that Riley wished to buy all of...
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