The federal action is similar to the Delaware action.
The federal plaintiffs posit claims of backdating based on the Merrill Lynch report.
The Merrill Lynch report formed the bases for other derivative lawsuits.
Robert Mc Kinney filed a federal action in the Northern District of California on May 22, 2006, three weeks before this action was filed. followed suit, filing an identical action in the same court two days later.
Further, they contend that this violation of their options plan exposes Maxim to adverse tax consequences.
Plaintiff contends that all defendants breached their fiduciary duties to Maxim and its shareholders.
The shareholder-approved 1983 Stock Option Plan and 1999 [p348] Stock Incentive Plan bound the board of directors to set the exercise price according to the terms of the plans.
The Northern District of California entered an order on June 14, 2006, consolidating these suits and all subsequently filed suits.
Under this order, two more actions were consolidated.