Transmeta's investors claim the company is being mismanaged

We thought Transmeta was back on track after settling that patent lawsuit with Intel and scoring a $7.5M investment from AMD, but it looks like the company's investors aren't as convinced -- they've filed a lawsuit accusing Transmeta of mismanagement and have offered to buy the whole company outright. Led by investment firm Riley Investments, which owns nearly seven percent of Transmeta, the lawsuit claims that Transmeta executives have been giving themselves huge unwarranted bonuses while failing to manage the company effectively -- the latest example being the general counsel getting a $10M bonus while the company posted a profit of just $44,000. That's definitely pretty sketchy, but even worse is Riley's plan if it does manage to take over: killing off Transmeta's manufacturing operations and turning the company into a patent troll. Either way, we should find out which drain Transmeta's going down rather soon -- we'll keep you updated.