MANHASSET, N.Y. Shareholders of semiconductor supplier Maxim Integrated Products Inc. have filed a shareholder derivative suit against the company, in connection with the granting of stock options made to its officers from 1995 to 2001.
The complaint appears to be filed in reaction to various published reports calling into question the option granting practices to company officers in the semiconductor industry. Numerous electronics companies are being investigated by the Securities and Exchange Commission and for their practice of backdating stock options for fair market value on dates when a company's share trades at relatively low prices.
The management of Maxim (Sunnyvale, Calif.) believes that the lawsuit is without merit. In a statement, Maxim’s management said it believes it has complied with all applicable laws and its shareholder approved stock option plan in granting options to officers and it has not backdated options.