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    • In re: KLA-Tencor Corp., Shareholder Derivative Litigation

    May 1, 2010
    Verdicts and settlements
    Sign up for Daily Journal emails
    Securities
    Derivative Suit
    Options Backdating

    In re: KLA-Tencor Corp., Shareholder Derivative Litigation

    Published: May 1, 2010 | Result Date: Mar. 16, 2010 | Filing Date: Jan. 1, 1900 |
    Case number: 06-CV-03445 Settlement –  $33,200,000

    Court

    USDC Northern


    Attorneys

    Plaintiff

    Travis E. Downs III
    (Robbins, Geller, Rudman & Dowd LLP)

    Christopher B. Harwood

    Darren J. Robbins
    (Robbins, Geller, Rudman & Dowd LLP)

    Shawn A. Williams
    (Robbins, Geller, Rudman & Dowd LLP)


    Defendant

    Joseph F. Lee

    Ismail J. Ramsey
    (Northern District of California)

    Joseph E. Floren
    (Morgan, Lewis & Bockius LLP)

    Michael J. Shepard
    (Hogan Lovells US LLP)

    Rebecca A. Falk
    (Office of the U.S. Attorney)

    Matthew S. Weiler
    (Schneider, Wallace, Cottrell & Konecky LLP)

    Dean S. Kristy
    (Fenwick & West LLP)

    Patrick D. Robbins

    Emily V. Griffen

    Megan Dixon

    Craig D. Martin

    Walter F. Brown Jr.
    (Paul, Weiss, Rifkind, Wharton & Garrison LLP)

    Brad D. Brian
    (Munger, Tolles & Olson LLP)

    John H. Hemann

    Dorothy L. Fernandez

    Robert P. Varian
    (Orrick, Herrington & Sutcliffe LLP)

    Miles F. Ehrlich
    (Ramsey & Ehrlich LLP)

    M. Todd Scott
    (Orrick, Herrington & Sutcliffe LLP)

    Jeffrey S. Facter

    Kevin P. Muck
    (WilmerHale LLP)

    James Raza Lawrence
    (Margolin & Lawrence)


    Facts

    Shareholders of KLA-Tencor Corp. filed a derivative suit against former executives of KLA in relation to options backdating.

    Result

    Certain former executives and their insurers agreed to pay $33.2 million in cash to KLA, and former executives agreed to surrender or reprice 550,853 KLA stock options and to give up compensation and certain benefits valued at $9.4 million. In addition, KLA agreed to corporate governance enhancements, including stock option procedures and updated internal controls. Insurance companies will cover $24 million of the settlement.


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