Semtech to pay $20M to settle options suit
The Camarillo-based semiconductor supplier said it entered into the settlement, which relates to stock option accounting practices, without admitting any wrongdoing. The settlement is still subject to court approval.
New York-based law firm Stull Stull & Brody filed suit in 2007 against the chipmaker on behalf of people who had purchased Semtech securities between September 2002 and July 2006, alleging the company had artificially inflated its earnings by improperly backdating its stock options.
Semtech will have to retroactively record a $10 million charge in its third-quarter financial results, in addition to a $10 million expense already recorded in the quarter. With the additional expense, Semtech’s earnings per share for the quarter ended Oct. 31 were 25 cents, compared to the 37 cents previously reported.
Semtech’s share price closed slightly higher, at $24.06, on Dec. 8 but was down again by 0.64 percent in after-hours trading.