CAMARILLO, CA — Semtech Corp. (Nasdaq: SMTC), a leading supplier of analog and mixed-signal semiconductors, today announced it has entered into an agreement in principle to settle all claims asserted against all defendants in the putative class action concerning the Company's stock option accounting practices captioned In re Semtech Corporation Securities Litigation, Case No. 2:07-cv-07114-CAS (C.D. Cal).
The agreement in principle provides for the payment of $20 million by the Company. The agreement in principle contemplates the negotiation and execution of a final settlement agreement. The proposed settlement would fully resolve all claims against the Company, all current officers and directors of the Company named in the lawsuit, and certain former officers and directors of the Company named in the lawsuit.
No parties admit any wrongdoing as part of the proposed settlement. The settlement also is subject to preliminary approval by the Court, notice to the putative class and subsequent final approval by the Court.
The agreement in principle was entered into after the Company announced its preliminary results of operations for the three and nine month periods ended October 31, 2010 but prior to the filing of the Company's Quarterly Report on Form 10-Q with the U.S. Securities and Exchange Commission. Under U.S. Generally Accepted Accounting Principles the agreement represents a recognized subsequent event in its financial statements for the three and nine month periods ended October 31, 2010. For details, please refer to the Company's Current Report on Form 8-K, filed with the U.S. Securities and Exchange Commission on December 8, 2010.