This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

QLogic Sues Emulex Over Ads: Exclusive

Stocks in this article: QLGC ELX BRCD LSI

ALISO VIEJO, Calif. ( TheStreet) -- Storage networking can be a highly contentious -- even litigious -- issue. Server and storage component specialist QLogic (QLGC - Get Report) has slapped Emulex (ELX - Get Report) with a lawsuit, accusing its rival of false advertising, unfair competition and trade libel.

The complaint, which was filed on Monday in the Superior Court of California in Orange County, alleges that Emulex published misleading information in a recent blog and a video, "purporting to show an egg frying on a QLogic semiconductor chip."

Qlogic

Customers users are keen to reduce the amount of heat in their data centers to avoid outages, focusing attention on components such as semiconductors.

"Emulex has no basis to support its 'datacenter failure' claims, and as a result its claims are false and misleading and intended to deceive potential customers of QLogic products," alleged QLogic, in its lawsuit.

QLogic also alleges that Emulex made untrue statements about the competitive landscape during its recent second-quarter conference call, specifically with regard to Converged Network Adapters (CNAs) that combine server and storage networking features.

Emulex was unwilling to comment on the legal action when contacted by TheStreet. "We cannot comment on pending litigation," said an Emulex spokesman, in an email.

QLogic has not yet responded to TheStreet's request for comment.

This, however, is not the first time that QLogic and Emulex have been embroiled in a legal battle. In 2004 the companies signed an agreement to settle outstanding patent disputes.

Shares of both companies rose during Thursday trading. QLogic's stock gained 39 cents, or 2.37%, to reach $17.09, outpacing the broader advance in tech stocks that saw the Nasdaq rise 1.32%. Shares of Emulex rose 11 cents, or 0.87%, to $12.22.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,387.21 -291.49 -1.65%
S&P 500 2,029.55 -27.54 -1.34%
NASDAQ 4,681.4970 -90.2660 -1.89%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs