Maxim Faces SEC Investigation

Staff Reporter -- Electronic News, 6/8/2006

Maxim Integrated Products Inc. today announced that it has been contacted by the U.S. Securities and Exchange Commission (SEC) regarding an informal inquiry relating to its past stock option grants and practices.

The SEC move is the analog and mixed-signal company’s second dip in stock option hot water. The company announced in late May that is being sued by shareholders over its options granting practices. Maxim said at the time that the suit appeared to be filed in reaction to the published reports calling into question the option granting practices in the semiconductor industry and that its management believes that the lawsuit is without merit.

The company gave no further detail on the SEC investigation today, except to say that it intends to cooperate in this matter.

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Click here for more news on the unfolding stock option investigation.

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Maxim becomes the latest company to face an SEC investigation over options practices, joining the likes of Altera, KLA-Tencor and Vitesse among those companies working with the federal organization.