Maxim Integrated Products, Inc. (NASDAQ:MXIM), a Sunnyvale-based company that designs, develops, manufactures, and markets analog integrated circuits, has announced the preliminary settlement of the securities class action pending against the company in the N.D. of California. The case, originally filed in 2008, stems from allegations that Maxim and certain of its former officers engaged in improper stock option backdating practices, resulting in the issuance of materially misleading financial statements. The company ultimately restated its financials to account for $773.5 million in additional stock-based compensation expense.
The settlement is for $173 million. The 10b-5 Daily has previously posted about the loss causation issues in the case. RiskMetrics Group has added the settlement to its tracking list of options backdating cases.Posted by Lyle Roberts at May 7, 2010 9:36 PM | TrackBack