has agreed to shell out million to resolve allegations by the U. Securities and Exchange Commission that the semiconductor maker backdated stock option grants to employees and misrepresented financial data.Weili Dai, co-founder of the Silicon Valley firm and former chief operating officer, was also accused of playing a role in the backdating scheme and will pay 0,000 to settle the claims filed in the U. District Court for the Northern District of California. Financial Services Law360 UK and Insurance Law360 UK provide breaking news and in-depth analysis on U. and European Union regulation, enforcement, legislation, and litigation involving banks, investment firms, insurers, and more.
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and one of its founders agreed to settle Securities and Exchange Commission charges for backdating stock-options grants.
Marvell initially focused on supplying chips for hard-disk drives and other data storage products, but now offers chips for everything from routers to cell phones.
Along the way, the company’s revenue has grown from $21 million a decade ago to nearly $3 billion in fiscal year 2009, catapulting the Shanghai, China-born Dai and her husband onto Forbes’ list of richest people, with each being worth $1 billion in 2007.
Since then, however, the company’s stock price has slipped, and so has their wealth.
In addition, federal regulators last May accused the company and Dai, formerly the company’s chief operating officer, of backdating stock options.
Marvell officials said they were pleased to put the SEC probe behind them. Dai are pleased this chapter is closed and are focused on moving forward,” said Marvell spokeswoman Louise Kehoe.
Marvell is one of dozens of Silicon Valley companies implicated in backdating stock options, which refers to the practice of changing the date on a stock option grant backward in time, typically to when the stock price was lower, increasing the odds that the recipient could sell the stock at a profit.
Securities regulators today hit Santa Clara-based Marvell Technology Group and its co-founder with civil securities charges for backdating stock options from 2001 to 2004, a practice that resulted in overstating more than 0 million in income to investors.
In documents filed in federal court in San Jose, the company and Weili Dai, Marvell’s co-founder and former chief operating officer, agreed to settle the case with the Securities and Exchange Commission without admitting wrongdoing.
The SEC alleges that the backdating forced the company to overstate its income by 2 million between 20.