SOURCE: Berman DeValerio Pease Tabacco Burt & Pucillo

January 24, 2008 20:05 ET

Investors Reach $65 Million Settlement With KLA-Tencor Corporation, Berman DeValerio Announces

SAN FRANCISCO, CA--(Marketwire - January 24, 2008) - KLA-Tencor Corporation ("KLA-Tencor" or the "Company") (NASDAQ: KLAC) has agreed in principle to pay $65 million to settle a shareholder lawsuit alleging the Company illegally backdated stock option grants.

The agreement in principle, which is subject to court approval, documentation, and notice, would settle all claims against KLA-Tencor and individual defendants, according to the law firm of Berman DeValerio ( Berman DeValerio represents the Louisiana Municipal Police Employees' Retirement System ("MPERS"), one of the co-lead plaintiffs in the action.

Other co-lead plaintiffs in the case are the Police and Fire Retirement System for the City of Detroit and the City of Philadelphia Board of Pensions and Retirement.

"This is an excellent result," said Joe Tabacco, the Berman DeValerio partner who oversaw the case for the firm. "By opening boardrooms to public scrutiny, lawsuits like this one have combined with government enforcement actions to help end these types of backdating practices."

The proposed settlement provides that investors who purchased KLA-Tencor securities from June 30, 2001, through and including January 29, 2007 ("Settlement Class Period"), may be eligible to file proofs of claims.

The lawsuit, which was brought in U.S. District Court for the Northern District of California, alleges that the Company backdated stock option grants to the individual defendants and/or other directors or executives to provide the recipients with a more profitable exercise price. The defendants denied the allegations in the lawsuit and, as part of the proposed terms of settlement, continue to deny all claims and liability. In particular, the complaint says that: (a) contrary to statements made by the Company, the option grants were not made at the fair market value or the NASDAQ closing price on the date of the grant; (b) KLA-Tencor improperly understated its expenses and overstated its earnings as a result of improper option backdating; and (c) KLA-Tencor failed to prepare its financial statements in accordance with Generally Accepted Accounting Principles.

Berman DeValerio prosecutes class actions nationwide on behalf of institutions and individuals, chiefly victims of securities and antitrust law violations. The firm has 30 lawyers in Boston, San Francisco, and West Palm Beach.

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