What was the nature of the lawsuit against KLA-Tencor?

The lawsuit was a securities class action that alleged claims under Sections 10(b), 14(a), 20(a), and 20A of the Securities Exchange Act of 1934. The core allegations revolved around KLA-Tencor's past stock option grants and the associated accounting and reporting practices.

What is the financial impact of this settlement on KLA-Tencor?

The company has agreed to pay $65.0 million to the settlement class. This amount represents the total payment required to resolve the litigation.

Who is included in the settlement class?

The settlement class includes all persons who acquired KLA-Tencor securities during the period from June 30, 2001, through January 29, 2007. However, defendants, certain related individuals, and those who opted out of the settlement are excluded.

What is the outcome of the lawsuit following this settlement?

The court has approved the settlement and entered a final judgment that dismisses the litigation with prejudice. This means the case is permanently closed, and KLA-Tencor, along with the other named defendants, has been fully released from any claims related to the allegations in this lawsuit.

KLAC 8-K SEC Disclosure

Summary

This 8-K filing by KLA-Tencor Corporation (now KLA Corp) primarily reports on the finalization of a securities class action lawsuit settlement. The company and its directors and officers were named defendants in a lawsuit concerning past stock option grants and related accounting and reporting practices. The litigation, filed in 2006, was consolidated, and the parties agreed to a settlement where KLA-Tencor will pay $65.0 million to the settlement class.

Key Highlights

1KLA-Tencor Corporation has reached a final settlement for a securities class action lawsuit.
2The lawsuit originated in 2006 and involved allegations related to past stock option grants and accounting practices.
3The company will pay $65.0 million as part of the settlement.
4The U.S. District Court for the Northern District of California approved the settlement on September 26, 2008.
5A settlement class was certified, comprising individuals who acquired KLA-Tencor securities between June 30, 2001, and January 29, 2007.
6The final judgment dismisses the litigation with prejudice, providing a full release to KLA-Tencor and other defendants.
7This filing provides closure on a significant legal matter that had been ongoing for several years.

KLA CORP 8-K Report, Corporate Update (Oct 2, 2008)

Summary

Key Highlights

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