KLA Committee Loses Bid To Toss Securities Case

Law360, New York (December 12, 2008, 12:00 AM EST) -- A federal judge has refused to toss shareholder derivative litigation against California chip maker KLA-Tencor Corp. after finding possible problems with the special litigation committee appointed to investigate a backdating scandal at the company.

Judge James Ware of the U.S. District Court for the Northern District of California on Thursday denied the committee's bid to terminate the action, finding questions about the size and independence of the two-member committee still lingered.

He also denied a bid to approve settlements with KLA founder Kenneth Levy, former Chairman...
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