Stockholder Seeks Vitesse Resignations

One of the largest stockholders in Vitesse Semiconductor Corp. has called for the resignation of two company board members over the backdating of stock options. Robert L. Chapman, managing member of Chapman Capital LLC, demanded the resignations of James Cole and Lou Tomasetta from the board of the Camarillo-based semiconductor manufacturer in a filing on Wednesday with the U.S. Securities and Exchange Commission. An investigation by Chapman Capital into the backdated stock options issued to former senior executives of Vitesse “has followed a trail of circumstantial evidence and now finds itself on the doorstep of Jim Cole,” Chapman said in a prepared statement. Cole, a 20-year veteran of the Vitesse board who also serves on the Compensation/Audit Committee, is currently a General Partner of Windward Ventures, a venture capital fund for early stage technology investments in Southern California. Tomasetta is the company’s former chief executive officer who was terminated along with other Vitesse executives in May. Cole and Tomasetta have a potential conflict of interest business relationship in that they serve together on the board of directors of Troika Networks, Inc., a portfolio company of Windward Ventures, the SEC filing said. In April, the company appointed a special committee of independent directors to conduct an internal investigation relating to past stock option grants, the timing of such grants and related accounting and documentation.