INVESTOR NOTICE: MURRAY, FRANK & SAILER LLP IS INVESTIGATING A POTENTIAL SHAREHOLDER CLASS ACTION AGAINST KLA-TENCOR CORPORATION - KLAC
New York, NY July 18, 2006 - Murray, Frank & Sailer LLP is investigating a potential class action on behalf of shareholders who purchased or otherwise acquired the securities of KLA-Tencor Corporation (“KLA-Tencor” or the “Company”) (Nasdaq: KLAC) between February 13, 2003 and May 22, 2006, inclusive (the “Class Period”).
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The Complaint would charge KLA-Tencor and its top executive officers and directors violated the federal securities laws by failing to account properly for stock options made to KLA-Tencor employees. The complaint would also allege that KLA-Tencor improperly expensed stock options, thereby causing the Company to disseminate false and misleading statements concerning the Company’s financial results; and intentionally and/or recklessly disregarding basic accounting principles.
On May 22, 2006, the Company’s Chief Financial officer, Jeffrey Hall, stated that the Company had received a subpoena from federal prosecutors seeking information on KLA’s stock option grants. This announcement came on the heels of a Wall Street Journal report that was disseminated earlier that day to the effect that KLA likely had “backdated” the grant date of stock options to senior management personnel. In addition, on that same day, a semiconductor industry analyst at Merrill Lynch reported in a note to clients that the stock prices of six companies in the Philadelphia Semiconductor Index (including KLA) had surged by an average of at least 14% in the 20 days following option grants during 1997 through 2002.
On this news, regarding the Company’s stock option grant practices, the price of KLA’s stock plummeted. The Company’s stock, which had stood at $45.24 at the close of trading on May 19, 2006, declined by $4.70 per share on May 22, 2006 to close at $40.54 per share.
Specifically, the Complaint
Murray, Frank & Sailer LLP and its predecessor firms have devoted its practice to shareholder class actions and complex commercial litigation for more than fifteen years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States. If you would like to discuss this action, this announcement, or your rights and interests, please contact plaintiff’s counsel Bradley P. Dyer of Murray, Frank & Sailer LLP.
Murray, Frank & Sailer LLP
Bradley P. Dyer
Fax: (212) 682-1892
Email: [email protected]