Court rules in Atmel's favor over firing of execs

By Colleen Taylor -- Electronic News, 2/9/2007

Atmel Corp. claimed victory this week in its battle with the company's former CEO and executive VP.

In its order issued Thursday, the Court of Chancery of the state of Delaware ruled in favor of Atmel and affirmed that former president and CEO George Perlegos and former executive VP Gust Perlegos were properly terminated. Furthermore, the court stated that "the Perlegoses have not demonstrated any right to hold any office of Atmel," according to a statement from the company.

In August, George and Gust Perlegos were ousted from their posts, following an independent investigation into allegations regarding the misuse of corporate travel funds. At that time, George Perlegos promptly fired back, filing suit against five of the board's directors and claiming in a statement that his termination was "unlawful and improper."

"We are gratified that the Court has upheld the unanimous decision of Atmel's independent directors," Steven Laub, Atmel's current president and CEO, said in a statement. "We have made significant progress in repositioning Atmel for growth and look forward to moving ahead with our business plan to create further value for our stockholders."

It is not over yet, however. There will be at least one more round in the fight between the former CEO and Atmel. The court also ruled that a special meeting of stockholders requested by George Perlegos should be held. Atmel said it will be conferring with Perlegos regarding the timing and implementation of that portion of the order.