Shares of Netlist Inc. tumbled in premarket trading Tuesday, a day after high-speed analog chipmaker Inphi Corp. said it sued the server and storage systems maker for patent infringement.
Netlist shares fell 76 cents, or 13.2 percent, to $5 ahead of Tuesday's market open. The stock has ranged from 11 cents to $7.98 over the past year.
Privately held Inphi, of Westlake Village, Calif., said Netlist's DDR3 memory modules infringe on two Inphi patents. It said the U.S. patents relate to memory interface technologies used in business server and storage applications. The suit was filed in the U.S. District Court for the Central District of California.
On Tuesday, Irvine, Calif.-based Netlist responded that Inphi's suit was "without merit" and "appears to be in response to the patent infringement lawsuit" Netlist filed against Inphi in September. That suit alleged Inphi's iMB isolation memory buffer integrated circuits infringed on a patent held by Netlist.
Netlist has requested an injunction barring Inphi from making and selling the product.