Netlist Falls 50% Following Court Loss

Shares of Netlist, Inc. (NASDAQ: NLST) collapsed Wednesday afternoon and fell approximately 50 percent following its loss in a breach of contract and trade secret misappropriation lawsuit.

The company had sued Diablo Technologies and claimed it had stolen its proprietary technology, which Diablo was supplying through SanDisk Corporation (NASDAQ: SNDK) to International Business Machines Corp. (NYSE: IBM) for its X-Series servers, according to The Register.

Netlist has also filed an infringement suit against Diablo and SanDisk, according to Seeking Alpha.

Netlist closed at $0.679 Wednesday, down 49.7 percent.