Xilinx Execs Sued Over Options

Staff Reporter -- Electronic News, 6/8/2006

The board of directors and certain officers at Xilinx Inc. are the subjects of shareholder legal action over the backdating of stock options.

The derivative complaint, which was filed with the United States District Court in the Northern District of California on June 2, alleges, among other things, that the defendants either authorized or failed to halt the practice of back-dating certain stock options, and that the officers named in the complaint were rewarded illegally by their receipt and retention of those options, San Jose-based Xilinx said in a statement late Wednesday, withholding the names of the accused officers.

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Click here for more news on the unfolding stock option investigation.

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The complaint also alleges that the company issued false and misleading proxy statements in 2002 and 2003.

The filing comes less than a month after Xilinx announced the adjustment of corporate governance principals, including the adoption of changes on stock ownership, board of directors' positions and terms of board seats. 

Xilinx is the most recent addition to the long list of tech companies encountering questions about stock option granting practices. That list now includes Rambus, Altera and KLA-Tencor, among others.