Atmel Sues Vitesse Semiconductor

Atmel Corp. said it is suing Vitesse Semiconductor Corp., alleging that Vitesse improperly hired away Atmel employees who it claims have disclosed confidential information to help Vitesse build a new chip plant in Colorado Springs, Colo. Atmel, a San Jose-based maker of specialty computer chips, said three former management-level employees who have since gone to work for Camarillo-based Vitesse are also encouraging current Atmel employees to join Vitesse. Atmel also has chip-making facilities in Colorado Springs. Atmel shares fell $1.81 to close at $22.06 on Nadsaq; Vitesse shares fell $1.16 to close at $43.94, also on Nasdaq.