Maxim, Now Trading on Pink Sheets Tentatively Settles One Backdating Suit

The DocuDrama blog reports here today Sunnyvale California chipmaker Maxim Integrated Products has tentatively settled one options grant backdating lawsuit. The company’s former CEO will pay approximately 6 million dollars and forfeit unexercised options. The former CFO settled an SEC civil case for approximately $800,000. Maxim will record “additional non-cash compensation” (that means a negative sign in front of that number) of 550-650 million dollars related to mispriced options.

What is interesting about this case is Maxim’s stock was “delisted from the NASDAQ stock exchange until it restate is financial reports because of stock option-related investigations.” DocuDrama reports that Maxim’s shares now trade on the “Pink Sheets” which is described as a “private listing service.”