Monday, June 15, 2009
Vitesse Wins $22.5M From KPMG
Camarillo-based Vitesse Semiconductor announced this morning that the firm has won $22.5M in a lawsuit filed against auditing firm KPMG. Vitesse--which has been struggling for the past few years to resolve issues related to back-dated stock options--had filed suit in June of 2007 alleging that KPMG was negligent in auditing the firm's stock options grants and financial statements. According to Vitesse, the lawsuit originally covered its option grants and financial statements between 1994 to 2000, and was later amended to also include 2001 to 2004. Other details of the settlement were not disclosed. Vitesse has been untangling issues related to back dating of its stock options since 2006, when the firm was one of a number targeted by the SEC in a broad-reaching investigation into the technology industry's granting of options to employees. That investigation resulted in a nearly complete turnover in the firm's executive team and delisting of its stock from the Nasdaq. The settlement with KPMG follows a settlement with the SEC earlier this month.