Maxim Integrated Products, Inc. - Securities Class Action

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Copyright (c) 2001
Stanford Law School

Maxim Integrated Products, Inc. Summary: The original complaint charges that Maxim and certain of its former officers violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 by engaging in improper stock option backdating that caused the issuance of materially false and misleading financial statements during the Class Period.

Specifically, the complaint asserts that on January 17, 2008, the Company announced that it would be restating its financial statements to record between $550 million and $650 million of additional stock-based compensation expense and that its previously issued financial statements could no longer be relied on. As a result of these adverse disclosures, the Company's stock price has declined 22%.

On April 7, 2008, several motions were filed by certain groups and individuals for the appointment of lead plaintiffs and to approve the selection of lead counsels. The judge entered an order on May 15 consolidating all related cases and appointing the Public Funds Group - comprised of the Cobb County Government Employees' Pension Plan, the Dekalb County Pension Plan and the Mississippi Public Employees Retirement System - to be appointed as lead plaintiffs.

Plaintiffs filed their Consolidated Class Action Complaint on November 14, 2008 adding a former managing director and treasurer of Maxim to its defendants list. The defendants responded by filing motions to dismiss the Consolidated Class Action Complaint on January 30, 2009. On July 16, 2009, Judge James Ware granting in part and denying in part Maxim Integrated Products, Inc.’s motion to dismiss and denied the individual defendant’s motion to dismiss. On December 11, 2009, the lead plaintiffs filed a motion to certify the class.

According to a press release dated May 5, 2010, Maxim Integrated Products, Inc. (NASDAQ:MXIM) announced that it has entered into a memorandum of understanding reflecting an agreement in principle to settle all claims asserted against all defendants in the putative class action concerning the Company's stock option accounting practices captioned In re Maxim Integrated Products, Inc. Securities Litigation, Case No. C-08-00832-JW (N.D. Cal.). The agreement in principle provides for the payment of $173 million by the Company. The after-tax cash impact is estimated to be $110 million. The memorandum of understanding contemplates the negotiation and execution of a final settlement agreement, and the settlement is subject to notice to the putative class and final approval by the Court.

On July 13, 2010, the Court entered the Order preliminarily approving the settlement. The Final Approval Hearing was set for September 27, 2010. On September 29, 2010, the Court entered the order approving the plan of allocation and the settlement. The case is now dismissed with prejudice. A hearing will follow regarding the plaintiffs' motion for attorney fees and reimbursement of litigation expenses.

On November 1, 2010, Judge James Ware granted the motion for attorneys' fees and reimbursement of expenses. According to the Order, the Court hereby awards attorney fees of $29,282,243.72 (17% of the $173,000,000 Settlement Fund net of Litigation Expenses), payable to Lead Counsel. The Court also grants Lead Counsel’s request for reimbursement of litigation expenses in the amount of $706,337.54.

On December 1, 2010, a Notice of Appeal was filed as to the Order on the motion for attorney fees. The appeal was dismissed by the appellants by the Mandate entered on January 5, 2011.

INDUSTRY CLASSIFICATION:
SIC Code: 3674
Sector: Technology
Industry: Semiconductors

COMPANY/ISSUER NAME:	Maxim Integrated Products, Inc.
COMPANY/ISSUER TICKER:	MXIM
COMPANY WEBSITE:	http://www.maxim-ic.com/

FIRST IDENTIFIED COMPLAINT IN THE DATABASE

Allan Query, et al. v. Maxim Integrated Products, Inc., et al.

COURT: N.D. California	DOCKET NUMBER: 08-CV-00832
JUDGE NAME: Hon. Judge Patricia V. Trumbull
DATE FILED: 02/06/2008	SOURCE: Notice of Filing
CLASS PERIOD START: 04/29/2003	CLASS PERIOD END: 01/17/2008
TYPE OF COMPLAINT: Complaint (Unamended and Unconsolidated)
PLAINTIFF FIRMS NAMED IN COMPLAINT:
Glancy Binkow & Goldberg LLP (Los Angeles) 1801 Ave. of the Stars, Suite 311, Los Angeles, CA, 90067 (voice) 310.201.915, (fax) 310. 201-916, info@glancylaw.com The Rosen Law Firm, P.A. (New York) 350 Fifth Avenue, Suite 5508, New York, NY, 10118 (voice) 212.686.1060, (fax) 212.202.3827, lrosen@rosenlegal.com _____________________________________________ TOTAL NUMBER OF PLAINTIFF FIRMS: 2

DOCUMENTS FOR THE FIRST IDENTIFIED COMPLAINT
Class Action Complaint - Jury Trial Demanded
Type: Complaint		Date on the document: 02/06/2008
Certification Of Financial Interest Pursuant To Civil Local Rule R. 3-7(d
Type: Other		Date on the document: 4/7/2008
Certification Of Financial Interest Pursuant To Civil Local Rule R. 3-7(d)
Type: Other		Date on the document: 4/7/2008
Certification Of Financial Interest Pursuant To Civil Local Rule R. 3-7(d)
Type: Other		Date on the document: 4/7/2008
Certification Of Financial Interest Pursuant To Civil Local Rule R. 3-7(d)
Type: Other		Date on the document: 4/7/2008
Certification Of Interested Entities Or Persons
Type: Other		Date on the document: 4/7/2008
Certification Of Timothy J. Burke Pursuant To Local Rule 3-7(d)
Type: Other		Date on the document: 4/7/2008
Declaration Of Jeff S. Westerman In Support Of The Motion Of The New Jersey Institutional Investors Group For Appointment As Lead Plaintiff And Approval Of Lead Counsel Selection
Type: Declaration		Date on the document: 4/7/2008
Declaration Of Timothy J. Burke In Support Of Motion By Rick T. Burningham For Appointment Of Lead Plaintiff And Lead Counsel Pursuant To Section 21D Of The Securities Exchange Act Of 1934
Type: Declaration		Date on the document: 4/7/2008
Notice Of Motion And Motion By Rick T. Burningham For Appointment Of Lead Plaintiff And Lead Counsel Pursuant To Section 21D Of The Securities Exchange Act Of 1934; Memorandum Of Points And Authorities In Support Thereof
Type: Motion		Date on the document: 4/7/2008
[Proposed] Order Appointing Big Capital Fund As Lead Plaintiff And Approving Lead Plaintiff's Selection Of Lead Counsel
Type: Order		Date on the document: 4/7/2008
[Proposed] Order Appointing City Of Philadelphia Board Of Pensions And Retirement As Lead Plaintiff And Approving Its Selection Of Co-Lead Counsel
Type: Order		Date on the document: 4/7/2008
[Proposed] Order Appointing The New Jersey Institutional Investors Group As Lead Plaintiff And Approving Lead Plaintiff's Selection Of Milberg LLP As Lead Counsel
Type: Order		Date on the document: 4/7/2008
[Proposed] Order Appointing The New Jersey Institutional Investors Group As Lead Plaintiff And Approving Lead Plaintiff's Selection Of Milberg Llp As Lead Counsel
Type: Order		Date on the document: 4/7/2008
[Proposed] Order Granting Motion By Rick T. Burningham For Appointment Of Lead Plaintiff And Lead Counsel Pursuant To Section 21D Of The Securities Exchange Act Of 1934
Type: Order		Date on the document: 4/7/2008
[Proposed] Order Granting Motion By Rick T. Burningham For Appointment Of Lead Plaintiff And Lead Counsel Pursuant To Section 21D Of The Securities Exchange Act Of 1934
Type: Order		Date on the document: 4/7/2008
[Proposed] Order Granting Motion By The Cobb County Government Employees' Pension Plan, The Dekalb County Pension Plan And The Mississippi Public Employees Retirement System For Appointment As Lead Plaintiffs And For Approval Of Lead Plaintiffs' Selection Of Colead Counsel
Type: Order		Date on the document: 4/7/2008
The New Jersey Institutional Investor Group's Notice Of Motion And Motion For Appointment Of Lead Plaintiff And Approval Of Lead Counsel Selection; Memorandum Of Points And Authorities In Support Thereof
Type: Motion		Date on the document: 4/7/2008
The New Jersey Institutional Investor Group's Consentto Proceed Before United States Magistrate Judge
Type: Other		Date on the document: 4/11/2008
Response Of New Jersey Institutional Investors Group To Competing Motions For Appointment Of Lead Plaintiff
Type: Other		Date on the document: 4/18/2008
Response By Rick T. Burningham To Competing Motions For Appointment Of Lead Plaintiff And Lead Counsel Pursuant To Section 21D Of The Securities Exchange Act Of 1934
Type: Other		Date on the document: 4/22/2008
Order Appointing Lead Plaintiffs
Type: Order		Date on the document: 5/15/2008
[Proposed] Order And Stipulation Regarding Filing Of Consolidated Complaint And Filing Of Defendants' Responses
Type: Order		Date on the document: 5/23/2008
Order And Stipulation Regarding Filing Of Consolidated Complaint And Filing Of Defendants' Responses
Type: Order		Date on the document: 5/28/2008
US District Court Civil Docket
Type: Docket		Date on the document: 5/28/2008
Defendant Carl W. Jasper's Answer to the Consolidated Class Action Complaint
Type: Other		Date on the document: 08/28/2009

REFERENCE COMPLAINT

In Re: Maxim Integrated Products, Inc. Securities Litigation

COURT: N.D. California	DOCKET NUMBER: 08-CV-00832
JUDGE NAME: Hon. James Ware
DATE FILED: 11/14/2008	SOURCE: Docket
CLASS PERIOD START: 04/29/2003	CLASS PERIOD END: 01/17/2008
TYPE OF COMPLAINT: First Consolidated
PLAINTIFF FIRMS NAMED IN COMPLAINT:
Bernstein Litowitz Berger & Grossmann LLP (San Diego) 12481 High Bluff Drive, Suite 300, San Diego, CA, 92130 (voice) 858.793.0070, (fax) 858.793.0323, blbg@blbglaw.com Chitwood Harley Harnes LLP (Atlanta) 1230 Peachtree Street, N.E., 2300 Promenade II, Atlanta, GA, 30309 (voice) 888.873.3999, (fax) 404.873.4476, info@chitwoodlaw.com _____________________________________________ TOTAL NUMBER OF PLAINTIFF FIRMS: 2

DOCUMENTS FOR THE REFERENCE COMPLAINT
Consolidated Class Action Complaint
Type: Complaint		Date on the document: 11/14/2008
Defendant Maxim Integrated Products, Inc.'s Notice Of Motion And Motion To Dismiss The Consolidated Class Action Complaint And Memorandum Of Points And Authorities In Support
Type: Motion		Date on the document: 01/30/2009
Defendant Timothy Ruehle's Notice Of Motion And Motion To Dismiss Consolidated Class Action Complaint Pursuant To Fed. R. Civ. P. 12(b)(6); Memorandum Of Points And Authorities In Support
Type: Motion		Date on the document: 01/30/2009
Defendant Maxim Integrated Products, Inc.’S Reply Memorandum Of Points And Authorities In Further Support Of Its Motion To Dismiss The Consolidated Class Action Complaint
Type: Memorandum		Date on the document: 04/15/2009
Defendant Timothy Ruehle’s Reply In Support Of Motion To Dismiss Consolidated Class Action Complaint Pursuant To Fed. R. Civ. P. 12(B)(6)
Type: Declaration		Date on the document: 04/15/2009
Order Granting In Part And Denying In Part Defendant Maxim's Motion To Dismiss With Leave To Amend; Denying Defendant Timothy Ruehle's Motion To Dismiss
Type: Order		Date on the document: 07/16/2009
Answer and Affirmative Defenses to Consolidated Class Action Complaint
Type: Other		Date on the document: 08/28/2009
Defendant Maxim Integrated Products, Inc.'s Answer to the Consolidated Class Action Complaint
Type: Other		Date on the document: 08/28/2009
Defendant Timothy Ruehle's Answer to Consolidated Class Action Complaint
Type: Other		Date on the document: 08/28/2009
Stipulation of Settlement
Type: Settlement		Date on the document: 06/18/2010
Order Preliminarily Approving Settlement, Providing For Notice And Scheduling Settlement Hearing
Type: Order		Date on the document: 07/13/2010
Final Judgment And Order Of Dismissal With Prejudice
Type: Order		Date on the document: 09/29/2010
Order Approving Plan Of Allocation
Type: Order		Date on the document: 09/29/2010
Order Granting Lead Plaintiffs' Motion For Attorney Fees And Reimbursement Of Litigation Expenses
Type: Order Approving AF&E		Date on the document: 11/01/2010
Notice Of Appeal
Type: Notice of Appeal		Date on the document: 12/01/2010
U.S. District Court Civil Docket
Type: Docket		Date on the document: 01/04/2011

OTHER DOCUMENTS
Order
Case Name and/or Number: In Re: Maxim Integrated Products, Inc. Securities Litigation
Type: Order		Date on the document: 01/04/2011

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