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Securities Settlement

Santa Clara: (Dec-27-07) Several federal and state derivative securities lawsuits were filed against McAfee, Inc., the leading security technology company, headquartered in Santa Clara, California, over its historical stock option practices. Company spokespersons stated that the company reached a tentative settlement with the plaintiffs in the pending lawsuits, resolving the dispute.

As part of the deal, the company has accrued $13.8 million in its second quarter 2006 financial statements related to expected payments pursuant to the tentative settlement and expects to complete the documentation and the required approvals in late December 2007 or early in the first quarter of 2008. Sources stated that McAfee had previously announced that the amount of the pre-tax non-cash stock based compensation charges to be reflected in its financial statements was likely to be between $100 million and $150 million. To correct past accounting for stock options, the company has recorded an additional $137.4 million of pre-tax, non-cash stock based compensation charges for the years 1995 through 2005. [FOX BUSINESS: McAfee SECURITIES]

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Published on Dec-27-07


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