Cases

Vitesse Semiconductor Corporation Options Backdating Litigation

Gardy & Notis, LLP has been appointed by the Court as lead counsel for shareholders of Vitesse Semiconductor Corporation (NASDAQ: VTSS) seeking to recoup damages against Vitesse's top executive officers and board of directors for permitting company executives to backdate stock option grant dates to take advantage of lower exercise prices then the price on the actual grant date. As the options were priced below the stock's fair market value when they were actually awarded, this created instant paper gains to the executives. This instant paper gain was equivalent to extra compensation and was thus a cost to Vitesse. Vitesse, however, failed to include the costs associated with this extra compensation in its financial results, and thereby overstated its profits.

The case is In re Vitesse Semiconductor Corporation Derivative Litigation, Lead Case No. CIV 240483, California Superior Court, Ventura County.

For more information regarding the lawsuit or to obtain a copy of the complaint or any Court filings, please contact us.