CNET News.com reports Palm is facing a class action lawsuit for misstating the number of colors that can be displayed by its Palm m130 handheld. According to the article, the suit charges that Palm “fraudulently, unfairly, deceptively and unlawfully” marketed its m130 handheld when it claimed the device could support 65,000 colors. Palm spokeswoman Marlene Somsak said the company plans “to fight the lawsuit aggressively.”