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SAN JOSE, Calif. — (Mealey’s) Technology company Maxim Integrated Products Inc. announced May 5 that it has reached an agreement in principle to settle an investor backdating class action in a California federal court for $173 million (In Re: Maxim Integrated Products, Inc., No. C 08-00832 JW, N.D. Calif.).
Maxim, which manufactures high-performance semiconductor products, issued a press release announcing the settlement. It said the settlement is subject to notice to the putative class and final approval by the U.S. District Court for the Northern District of California. The after-tax impact of the settlement is estimated to be $110 million, Maxim said.
Lead plaintiffs Cobb County Government Employees Pension Plan, the DeKalb County Pension Plan and the Mississippi Public Employees Retirement System brought their class action complaint on behalf of investors who purchased publicly traded securities of Maxim Integrated Products between April 29, 2003, and Jan. 17, 2008. The plaintiffs allege violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Securities Exchange Commission Rule 10b-5.
They allege that the defendants participated in a large-scale and systematic backdating of Maxim stock options from 1994 to 2008, which led to an artificial inflation of Maxim’s stock price.
[Editor's Note: Full coverage will be in the May issue of Mealey’s Emerging Securities Litigation. For all of your legal news needs, please visit www.lexisnexis.com/mealeys.]
For more information, call editor Dylan McGuire at 610-205-1114, or e-mail him at Dylan.McGuire@lexisnexis.com.
Download the complaint.