Semtech Securities Class Action Settlement Worth $20 MillionBy Avik, Gaea News Network
Thursday, December 9, 2010
Semtech Corp. is known for manufacturing analog and mixed-signal chips. According to the company, it has agreed in principle to pay $20 million to settle a class action securities lawsuit concerning the company’s stock option accounting practices. The news has been officiated on Wednesday.
Reportedly, the agreement is preliminary and is awaiting a negotiation and execution of a final settlement agreement.
The officials at the company stated that the concerned settlement if reached at would provide solution to all claims against the company, all current officers and directors and some former officers and directors of the company named in the lawsuit.
The settlement is mutual and no party is posing any allegations.
The court is yet to approve the settlement proposal, notice to the putative class and subsequent final approval by the court.
According to sources, Semtech shares closed Wednesday’s regular trading session at $24.06, up 15 cents with a loss of 15 cents in after hours trading.
Courtesy — RTT News