COLCHESTER, Conn., Oct. 18, 2004 (PRIMEZONE) -- Scott + Scott, LLC (LatticeSemiconductorDerivativeLitigation@scott-scott.com or nrothstein@scott-scott.com) has filed a shareholder derivative lawsuit in the Superior Court for the State of Oregon, 20th Judicial District, on behalf of Lattice Semiconductor Corp. ("Lattice Semiconductor" or the "Company") (Nasdaq:LSCC) against its Board of Directors seeking to remedy alleged violations of state law, including breaches of fiduciary duties, abuse of control, gross mismanagement, waste of corporate assets and unjust enrichment.
The Complaint alleges that Lattice shareholders have been subjected to a pattern of abuse, which has been perpetrated by members of the current management and has been further sanctioned or ignored by the current Board of Directors. More specifically, the Complaint alleges that the accounting issues at the Company that have led to recent restatements of the Company's financials are merely the "tip of the iceberg" of a much larger system of abuse that has been weighing upon the Company. In many of the instances particularized in the Complaint, the Board of Directors "turned a blind-eye" to extravagant Company expenses incurred by the management and corporate waste which have bled Company coffers and further hampered Company performance in relation to its competitors.
Further, the Complaint alleges that while the Company's Board of Directors ignored numerous abuses, in 2002 and 2003, the Company was "unsuccessful and not profitable" (and failed to meet targets that would have triggered bonuses under the Executive Incentive Plan). Nevertheless, during that same timeframe, the Board of Directors nevertheless continued to approve grants of stock options to themselves, as well as massive grants of stock options to senior executives of the Company. In 2002, the Board of Directors granted 1,045,000 in additional stock options with a Potential Realizable Value of $9.8 million to the five most senior executives of the Company. In 2003, the Board of Directors granted 915,000 in additional stock options with a Potential Realizable Value (at an assumed 10% annual rate of stock price appreciation) of $10.6 million to the five most senior executives of the Company.
This outrageous enrichment of senior corporate executives, despite Company performance that the Compensation Committee itself described as "unsuccessful and not profitable," the Complaint alleges, came directly at the expense of the Company's shareholders in the form of dilution. The option grants and exchange offer of 2002-2003 alone will potentially cause dilution of at least 7% to existing shareholders. In light of the Company's dismal performance, these actions cannot be reconciled with Board independence or its fiduciary duties to shareholders.
The plaintiff, Ron Tonkin, President of the Ron Tonkin Family of Dealerships, has held hundreds of thousands of shares in Lattice for over twenty years and believes strongly in the viability of the Company. He is stepping in derivatively on behalf of the Company to exercise his rights as a shareholder and contends that there has been waste and abuse during the relevant period at this Company. He is determined as a large shareholder to dedicate himself to help this company move forward with any necessary changes and make it accountable to its shareholders.
If you are a Lattice shareholder or employee and have any questions concerning the action, you may contact Scott + Scott at 800/404-7770 or 860/537-3818 (EDT) or 800/332-2259 or 619/233-4565 (PDT) to discuss this action and your rights. Class members may also view Scott + Scott's clients' most recent filings on our website at http://www.scott-scott.com. You can also send a fax to the firm at 619/233-0508. Any interested party may contact attorney Neil Rothstein at nrothstein@scott-scott.com.
Scott + Scott, LLC, a Connecticut-based law firm with offices in Ohio and California, is a law firm with a national practice and reputation. Scott + Scott has dedicated itself to client communication and satisfaction. The firm is currently litigating major securities, antitrust and employee retirement plan cases throughout the United States and represents pension funds, charities, foundations, individuals and other entities worldwide in both class and non-class cases. Please visit our website at http://www.scott-scott.com to learn more about the firm and its practice. The firm's office in Connecticut is located at 108 Norwich Avenue, Colchester, CT, 06415. This release has been issued with consent of plaintiff.
GLOBAL BROKERING IN "RIGGED-BID" SCANDAL/NY ATTORNEY GENERAL CLAIMS BILLIONS IN LOSSES
Scott + Scott, LLC filed suit against Hartford Financial. Yesterday, Attorney General Eliot Spitzer sued the nation's leading insurance brokerage firm, Marsh & McLennan Companies, alleging that it steered unsuspecting clients to insurers with whom it had lucrative payoff agreements, and that the firm solicited rigged bids for insurance contracts. Lawsuits addressing certain major insurance brokerage service providers (including Marsh & McLennan, Aon, ACE Ltd., AIG, Willis Group Holdings, Acordia, HLF Group, Jadine Lloyd Thompson, Alexander Forbes, Hilb, Rogal & Hamilton, Brown & Brown, Arthur J. Gallegher, Hartford and Munich American Risk Partners and others) had a long-standing pattern of deceptive and improper business practices surrounding the provision of what is commonly referred to as "global broking" services. Those who purchased directly from such defendants or who are shareholders or agents/agencies should contact Neil Rothstein at 800/332-2259.