Linear Target of Shareholder Suits Over Options
Staff Reporter -- EDN, May 26, 2006
Two stockholder derivative lawsuits have been filed against analog chipmaker Linear Technology Corp. in the wake of the current scandal over companies’ alleged backdating of stock options.
The suits were filed in the U.S. District Court of California against members of the company’s board of directors and various executive officers alleging improper backdating of stock options granted to them between 1995 and 2002.
"The company grants its stock options on a quarterly basis in connection with its regularly scheduled board meetings, except for infrequent board-approved option grants for certain new hires," said Robert Swanson, Jr., executive chairman, in a statement. "Board meetings are scheduled far in advance to coincide with the company's quarterly earnings releases. The company does not use a look back in connection with its stock option grants."
Linear said it intends to defend the lawsuits vigorously. The Company does not anticipate that the resolution of these matters will have a material effect on its results of operation or financial condition.
Linear was one of a half dozen semiconductor or semiconductor equipment companies named in a report this week by Merrill Lynch of having options that generated “excess” returns.
