SEC Sues Maxim, Execs Over Backdating Scheme

Law360, New York (December 4, 2007, 12:00 AM EST) -- Federal regulators have slapped semiconductor maker Maxim Integrated Products Inc. and two of its top executives with lawsuits alleging that they reported false financial information to investors by improperly backdating stock option grants to the company’s employees and directors.

The two lawsuits, both filed Tuesday in the U.S. District Court for the Northern District of California, claim that the Silicon Valley circuit maker routinely provided potentially lucrative in-the-money options, such as options granted at below-market prices, to employees.

Under well-settled accounting principles, granting in-the-money options obligated...
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