Monday, June 1, 2009
Vitesse Nears Settlement With SEC Over Stock Options
Camarillo-based Vitesse Semiconducutor says that it's long running saga with the SEC over stock options practices is nearing an end, and said that the staff of the Securities and Exchange Commission is recommending a proposed settlement with the firm to conclude "all matters arising from the SEC investigation." Vitesse said that under the proposed settlement, the firm will pay $3M in a civil penalty, and a consent to "permanently enjoin" the firm from violating antifraud and other provisions of security laws. The firm has been under scrutiny since May 2006, when the firm was caught up in a wave of stock options back dating investigations across the technology industry. The resulting investigations resulted in the delisting of the firm from the Nasdaq, a complete turnover in the firm's executives and board of directors, and sale of several product units, not to mention restatement of its financials.