Atmel Corp. (ATML) said that it has entered a stipulation and agreement of compromise, settlement and release to settle litigation regarding Atmel's response to a subsequently withdrawn acquisition proposal by Microchip Technology Inc. (MCHP) and ON Semiconductor Corp. (ONNN).
The terms of the stipulation are based on the terms of an agreement-in-principle set forth in a memorandum of understanding dated as of September 14.
The stipulation provides for the full settlement and release of all claims by or against Atmel and all of the defendants related to the allegations and/or matters in three stockholder class actions.
The suit pending before the Court alleged that the definition of "Beneficial Ownership" and "Derivatives Contract" in the Rights Agreement were vague and unenforceable under Delaware law.
The settlement set forth in the stipulation is subject to and conditioned upon obtaining final approval by the Court.
As part of the settlement, Atmel also has agreed not to oppose plaintiffs' attorneys' application to the Court for an award of fees and expenses up to a limit of $950,000. Pursuant to its pre-existing obligations to indemnify the Board, Atmel shall pay such an award as the Court may approve, up to $950,000.
The Court has scheduled a hearing on January 7, 2010, at 2:30 p.m., to be held at the Court of Chancery.
For comments and feedback contact: editorial@rttnews.com
June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.