FTC Dismisses Suit Against Rambus

"We believe that the administrative law judge failed to understand key points of fact and law presented by the FTC counsel at the trial," said Parker. "We're hopeful that on full review of the evidence and all the testimony, the commission will enter a final determination consistent with its earlier findings that served as a basis for bringing the suit against Rambus."

Parker noted that there is precedent for the FTC to reverse a decision by one of its administrative law judges. Moreover, the case could still be appealed within the FTC.

The commission's decision comes nearly two years after it launched an antitrust action against Rambus, in June 2002.

As the recent action shows, Rambus shares tend to spike and fall sharply based on momentum from the latest court ruling.

Only last week, the stock sold off sharply on word that the European Patent Commission had revoked one of the company's patents. Analysts noted at the time, however, that the FTC decision was of far greater importance.