Maxim Integrated Products Inc. Agrees to Settlement In Shareholder Class Action
July 2010 - Please be advised that your rights may be affected by a class action lawsuit pending in this Court (the “Action”) if, during the period from April 29, 2003, through January 17, 2008, inclusive, you purchased or otherwise acquired the publicly traded common stock of Maxim Integrated Products, Inc. (“Maxim”).
Please also be advised that the Court-appointed Lead Plaintiffs, the Cobb County Government Employees’ Pension Plan, the DeKalb County Pension Plan, and the Mississippi Public Employees Retirement System (collectively, “Lead Plaintiffs”), on behalf of the Class, have reached a proposed settlement of the Action for a total of $173 million in cash that will resolve all claims in the Action (the “Settlement”).
On July 13, 2010, the Court preliminarily approved the Settlement, preliminarily certified the Class, authorized this Notice to be sent to potential members of the Class, and scheduled the Final Approval Hearing to consider whether to grant final approval to the Settlement.
February 2008 - According to a press release dated February 6, 2008, the complaint charges that Maxim and certain of its former officers violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 by engaging in improper stock option backdating that caused the issuance of materially false and misleading financial statements during the Class Period.
Specifically, the complaint asserts that on January 17, 2008, the Company announced that it would be restating its financial statements to record between $550 million and $650 million of additional stock-based compensation expense and that its previously issued financial statements could no longer be relied on. As a result of these adverse disclosures, the Company’s stock price has declined 22%.