The Microsemi executive team fired following the company’s acquisition by Microchip Technology is not going quietly. They have announced they are suing Microchip Technology and its executives for alleged slander, libel and unfair business practices according to the Orange County Business Journal. The lawsuit names Microchip Chief Executive Steve Sanghi and three of his top executives.
The suit alleges that Sanghi blamed Microsemi executives including CEO Jim Peterson (pictured) for Microchip’s underperformance after the sale, and that Sanghi fabricated claims that Microsemi was performing poorly leading up to and after the sale.
In a conference call to financial analysts on August 9, Sanghi alleged that Microsemi had been “extremely aggressive in shipping product into the distribution channel” and that Microsemi had “over-shipped into the contract manufacturers by making deals and offering discounts”.
“That statement is false,” states the lawsuit. “There simply was no ‘overshipping’ or ‘excess’ inventory, and to say otherwise is false and misleading.”
According to the Orange County Business Journal, the lawsuit alleges Sanghi wanted to avoid paying bonus and incentive compensation, including commissions to Microsemi employees.
The lawsuit also includes injunctions from “making, uttering, or publishing any further defamatory statements or misrepresentations about plaintiffs or other former Microsemi executives” and those “engaging in the unlawful, unfair, and fraudulent business practice.”