SAN FRANCISCO - Federal regulators have notified
that they intend to bring civil charges against the company for stock-option backdating.
The Santa Clara, Calif.-based company announced late Friday that it had received a so-called Wells Notice from the staff of the
Securities and Exchange Commission
. The charges appear to be aimed at the company, as well as at former Chief Operating Officer Weili Dai.
Marvell said the SEC is not recommending any enforcement action against any current company officers at this time.
Marvell is among numerous companies embroiled in a controversy involving the backdating of stock options. The chipmaker has said that roughly 74% of the stock options granted to employees between 2000 and 2006 were found to be backdated, leading the company to restate $327 million.
The backdating affair also has
led to significant changes in the company's executive ranks, resulting in the departure of Marvell's CFO and its general counsel, and the demotion of Dai, who is married to CEO Sehat Sutardja.
Marvell said Friday that the SEC notice indicates the staff will recommend that the commission bring civil actions for injunctive relief and civil monetary penalties.
Marvell will have an opportunity to respond in writing to the notice before the staff makes its formal recommendation to the commission.
The company said it continues to cooperate with the SEC and will attempt to resolve the matter with the staff before any action is filed.
Shares of Marvell were off a penny to $17.12 in extended trading Friday.