MANHASSET, N.Y. Applied Micro Circuits Corp. announced Friday (Jan. 21) it has reached an agreement to settle a class-action litigation pending against the company and certain current and former officers and directors.
Applied Micro Circuits (San Diego) and the defendants denied any wrongdoing as part of the $60 million settlement. The company expects its insurers to pay approximately $31 million, and will record a $29 million charge in its third fiscal 2005 quarter ended Dec. 31, 2004.
"The company has vigorously contested this litigation and remains steadfast in its position. However, putting this four-year-old litigation behind us removes the uncertainty and distraction of the litigation, and allows the company to focus on its business," said Cesar Cesaratto, AMCC's lead director and the chairman of the company's governance and nominating committee, in a statement.