Shareholders Sue Maxim Over Options
Staff Reporter -- EDN, May 24, 2006
Upping the ante of repercussions from the recent scandals surrounding option grants and pricing, shareholders have filed suit against Maxim Integrated Products and certain officers and directors of the company.
The suit was filed on Monday against the Sunnyvale, Calif.-based company, and Maxim said in a statement that it appeared to be filed “in reaction to various published reports calling into question the option granting practices to company officers in the semiconductor industry. The company’s management believes that the lawsuit is without merit.”
Maxim said that its option granting process to the company's officers consists of a written proposal made by the CEO to the board’s compensation committee.
“Upon the conclusion of discussion and/or adjustment of the proposed amounts, the compensation committee approves the grants made to officers and the grants are then made by the company,” Maxim said, in a statement. “The company's management believes that it has complied with all applicable laws and its shareholder approved stock option plan in granting options to officers and it has not backdated options.”
