1:45 PM -- KLA-Tencor Corp. announced Jan. 28 that it's agreed to pay a $65 million settlement in a shareholder lawsuit over stock options.
The AP says it's the second largest settlement in the ongoing options scandal, the largest being $117.5 million paid by Mercury Interactive, now owned by HP Inc. (NYSE: HPQ).
Now, the largest earnings correction due to options backdating still goes to Broadcom Corp. (Nasdaq: BRCM), with a $2.2 million restatement. (See Broadcom's $2.2B Confession and Broadcom Blame Spreads.) One would presume a possible settlement would have to be larger than KLA's.
But we might never get to find out. Broadcom, which received several shareholder lawsuits in mid-2006 over the options issue, so far says it intends to vigorously defend itself.
— Craig Matsumoto, West Coast Editor, Light Reading