Atmel Hit With 2nd Shareholder Suit

Staff Reporter -- Electronic News, 8/11/2006

Yet another shareholder lawsuit has been filed in the U.S. District Court for the Northern District of California against certain officers and directors at IC supplier Atmel Corp.

Federman and Sherwood, a firm specializing in securities litigation, said the complaint alleges violations of Section 16(b) of the Securities Exchange Act of 1934, including allegations of price manipulation through backdating of stock options.

On Friday, Keller Rohrback L.L.P. announced that a separate shareholder derivative complaint has been filed in the U.S. District Court for the Northern District of California against current and former company executives and board members.

The litigation is just one of many headaches for the embattled company. Earlier this week, Atmel Corp.'s board of directors fired several executives, including its president and CEO George Perlegos and its executive VP Gust Perlegos over the misuse of corporate travel funds.

In July, the company announced the launch of an investigation into the its stock option granting practices, and said it would likely delay the filing of its Q2 Form 10-Q past the SEC's extended due date of August 14.