Microtune to settle option backdating charges

Microtune neither admitted nor denied the allegations but did consent to a permanent injunction against future violations of the securities laws. The company will not be required to pay a penalty.

Microtune said in 2006 it uncovered several examples of backdated stock option grants, and it launched an internal review. The Securities and Exchange Commission started a formal investigation last year.

The internal audit found that actual measurement dates for some past stock option grants differed from the recorded dates, and in certain cases the difference resulted in stock options expenses that were not properly recorded.

The company reported last year that the total incremental non-cash, stock-based compensation charges related to the investigation were about $8.5 million, and estimated tax liabilities were about $600,000.

Microtune also said Monday that a U.S. District Court dismissed a shareholder lawsuit last week that had been filed against the company and some of its current and former officers and directors relating to its stock option granting practices.

Microtune shares fell 2 cents to close at $3.46 Monday.