Vitesse Reaches Settlement with KPMG

Camarillo-based Vitesse Semiconductor Corporation has reached a settlement in connection with the company’s lawsuit against its former auditing firm, KPMG LLP. Under the settlement, KPMG has agreed to pay Vitesse $22.5 million and forgive all past indebtedness. Additionally, the parties agreed to execute mutual general releases of all claims. In June 2007, the Vitesse Semiconductor Corp. filed suit against KPMG alleging the firm was negligent in auditing the company’s stock option grants and financial statements during the years 1994 to 2000. Vitesse later amended its complaint to include the years 2001 to 2004. The terms of the settlement were reached following mediation before the Hon. Daniel Weinstein. Eric Billingsley