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Too slow processors, lawsuit against Transmeta

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After some trouble on Wall Street, where the stock dropped precipitously after the announcement of lower than expected profits, and after the disappointments suffered by some OEMs who canceled their orders, judicial troubles also come for Transmeta. A law firm has in fact filed a lawsuit against the company that manufactures microprocessors claiming that some of the claims on the performance of its chips are false. "Illegal advertising" would concern, in particular, Crusoe's performance, which according to Transmeta would be capable of high performance and low consumption. "Contrary to what was claimed at the time of the stock market debut – says the law firm Milberg Weiss – Crusoe processors are capable of significant performance only at the expense of consumption". Since Transmeta's chips are not capable of "significant performance" in the face of low consumption, claims the lawsuit, Transmeta has mystified its ability to impose itself on the market. The possibility of success of the case obviously depends on the ability of the lawyers to demonstrate that Transmeta has misled its investors by misusing the terms "significant performance", a phrase which Milberg Weiss says means "comparable with AMD and Intel competition" At the moment Transmeta has not made official statements on the subject