Semtech Corp. will pay $20 million to settle a class action lawsuit over its stock option accounting practices. The Camarillo-based semiconductor supplier admits to no wrongdoing as part of the agreement, which still needs to be finalized and approved by the U.S. District Court. The issues raised in the lawsuit date back to 2006 when the company came under scrutiny by the U.S. Securities and Exchange Commission over allegations Semtech artificially inflated its earnings by improperly backdating its stock options. In July 2006, Semtech concluded that accounting measurement dates from some stock option grants were different from the measurement dates used for earlier awards. As a result, the company opted to restate all of its statements dating to 2002. The proposed settlement fully resolves all claims against Semtech, current officers and directors, and certain former officers and directors. Semtech was sued in 2007 by New York-based law firm Stull Stull & Brody on behalf of people who had purchased Semtech securities between September 2002 and July 2006. The proposed agreement was entered into after Semtech announced its preliminary results of operations for the three and nine month periods ended Oct. 31 but prior to the filing of its Quarterly Report with the SEC. As a result, Semtech will have to retroactively record a $10 million charge in its third-quarter financial results, in addition to a $10 million expense already recorded in the quarter. Shares in Semtech closed at $24.06. Mark R. Madler & Andrea Alegria