Microtune announces settlement with Securities and Exchange Commission and final judgment dismissing Pedroli stockholder derivative lawsuit
July 1, 2008
PLANO, Texas -- Microtune®, Inc. (NASDAQ: TUNE - News) today announced the resolution of the previously announced investigation by the United States Securities and Exchange Commission ("SEC") into the company's historical stock option granting practices. The SEC’s investigation followed Microtune’s audit committee investigation, the results of which Microtune reported in a press release issued on December 29, 2006 and in its Annual Report on Form 10-K/A filed on January 22, 2007.
Microtune has agreed to settle with the SEC, without admitting or denying the allegations in the SEC’s complaint, by consenting to the entry of a permanent injunction against future violations of the federal securities laws. Microtune was not required to pay a civil penalty or other money damages as part of the settlement. "Microtune self-initiated an audit committee investigation into these matters, reported its findings to the SEC, and cooperated fully with the SEC as it conducted its own investigation. We are extremely pleased to resolve this matter with the SEC," said James A. Fontaine, President and Chief Executive Officer.
FINAL JUDGMENT DISMISSING PEDROLI STOCKHOLDER DERIVATIVE LAWSUIT
Microtune also announced today that the United States District Court for the Eastern District of Texas entered a final judgment on June 27, 2008, dismissing the stockholder derivative lawsuit entitled Peter A. Pedroli v. Douglas J. Bartek, et al. (Case No. 4:07-CV-43), filed on January 31, 2007 against Microtune, as a nominal defendant, and certain of Microtune's current and former officers and directors. The lawsuit alleged various claims related to Microtune's historical stock option granting practices described in its Annual Report on Form 10-K/A filed on January 22, 2007.
Prior to the dismissal of the litigation, on May 21, 2008, Mr. Pedroli made a demand on the Board of Directors that the Company take certain actions related to the Company’s historical stock option granting practices. The Board of Directors is evaluating this demand.
Microtune Inc. (Nasdaq: TUNE)
You May Also Like
