This is a securities fraud class action lawsuit against Semtech Corp. and certain of its officers and directors.
The class action lawsuit alleges that Semtech carried out this scheme by intentionally manipulating the grant dates of stock options awarded officers and directors of Semtech and selecting grant dates at which Semtech stock traded at much lower prices than the actual grant dates. In public disclosures, however, Semtech falsely claimed that the grants were dated and priced as of the date of the actual grants.
The class complaint further alleges that on July 20, 2006, Semtech revealed that it expected to record material amounts of additional compensation expense and that it expected to restate its financial results from fiscal 2002 through 2006, while it also disclosed that its prior financial statements should not be relied upon.
Semtech's share price fell in reaction to this announcement, falling from $13.19 to $12.37 per share. Semtech shares continued to fall in reaction to the news on July 21, 2006, closing at $11.60 per share.
Name (Stock Symbol)
Semtech Corporation (SMTC)
Semtech Corporation supplies analog and mixed-signal semiconductor products.
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