CAMARILLO, USA: Vitesse Semiconductor Corp. announced that the recommended settlement agreed to in June 2009 related to the SEC’s investigation of the Company’s historical stock option practices and accounting irregularities that occurred between 1995 and 2006 has been finalized with the United States Securities and Exchange Commission (SEC).
As part of the 2009 Settlement, Vitesse agreed to pay a $3 million payment without admitting or denying wrongdoing. With the payment of the 2009 Settlement, the SEC concludes its investigation of Vitesse. The payment was accrued in the Company’s financials in June 2009.
The former executives named in the SEC lawsuit, Louis R. Tomasetta, Eugene F. Hovanec and Yatin Mody, were terminated by Vitesse in May 2006. In settling related civil actions, those former executives agreed not to seek from Vitesse future indemnification or defense costs related to government actions, including the SEC.