Vitesse Semiconductor Corp., a Camarillo company still recovering from an accounting scandal, has reached a settlement in its lawsuit against its former auditing firm.
KPMG LLP will pay Vitesse $22.5 million and forgive all past indebtedness, Vitesse announced Monday. The settlement also releases both sides of all claims.
Vitesse filed suit against KPMG in June 2007, charging that KPMG was negligent in its auditing of Vitesse’s stock option grants and financial statements from 1994 to 2000. It later added 2001 to 2004 to the suit.
Vitesse announced when it filed the suit that it was seeking more than $100 million in damages.
The company did not return a call for comment Monday. But response to the settlement was practically gleeful on VitesseInvestor.com, where shareholders post news and updates about the company. The original post to the news was “Yipee!!!!!,” a response that following commenters echoed.
Read the full story here on the Ventura County Star website.