(Reuters) - Cypress Semiconductor Corp (CY.O) said on Wednesday that it has agreed to nominate former Chief Executive T.J. Rodgers’ nominees for elections at the 2018 and 2019 annual meetings as part of a settlement.
Rodgers, the company’s founder, had filed a lawsuit in April seeking Cypress’ board to make extra and corrected disclosures to its proxy materials in time for the 2017 annual meeting.
Rodgers, who left the firm last year and is the largest individual shareholder, was running a proxy contest against Cypress, seeking to replace directors Eric Benhamou and Ray Bingham.
Bingham resigned from the board in early June, following which both of Rodgers’ nominees, Dan McCranie and Camillo Martino, won the 2017 election.
Rodgers also agreed to end all existing litigation against Cypress connected with the 2017 annual meeting, the company said.
Cypress would reimburse Rodgers for expenses of up to $3.5 million related to the proxy contest.
Reporting by Aishwarya Venugopal in Bengaluru; Editing by Martina D'Couto