Rambus Lower On Report of FTC Suit - TheStreet

Rambus

(RMBS) - Get Report

was trading lower on a report that the FTC is preparing an antitrust suit against it.

The FTC lawsuit would charge that Rambus worked with the computer industry to adopt a memory-chip standard while simultaneously applying for patent rights to it,

USA Today

reported. The FTC lawsuit would seek to prevent Rambus from collecting royalties on its SDRAM memory and possibly its more advanced DDR memory, according to lawyers familiar with the FTC probe.

A Rambus lawyer wouldn't comment directly on the suit but said rules governing the trade group that worked on the standard don't require companies to disclose pending patents.

The shares were recently off 13% at $5.75.