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Thursday, Mar 28, 2024

Vitesse Sues Auditing Firm for Malpractice

Vitesse Semiconductor Corp. seeks $100 million in damages from its former auditing firm in a lawsuit filed Wednesday alleging professional malpractice. Camarillo-based Vitesse alleges in the suit filed in Los Angeles Superior Court that KPMG, LLP failed to properly provide auditing and other services to the company from 1994 to 2000. Vitesse is among a number of companies nationwide under investigation by the U.S. Securities and Exchange Commission for its stock options practice. An internal investigation released in December reported that former senior management backdated stock options over a number of years, resulting in lower exercise prices for the stock options. The same former executives tried to conceal the backdating by creating or altering documents, the committee’s report said. Earlier this month Vitesse named BDO Seidman, LLP as its new auditing firm.

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