SiliconBeat

Rambus, the Los Los Altos chip designer that knows its way around a courtroom after years of asserting and defending its intellectual property, decided to settle an investor lawsuit related to misdated stock options. In a press release filed with the SEC Friday it said it would pay $18 million in return for a dismissal “”with prejudice” of all claims against the defendants from a lawsuit filed in July 2006.

Rambus said it is continuing discussions with its insurers regarding their contribution of a portion of the settlement claims.

Last month, Rambus ex-chairman Geoff Tate and three other executives settled legal claims brought against them on behalf of the company by agreeing to pay Rambus $6.5 million.

Rambus has been unable to file full financial reports with the SEC since May 2006 as it
determines the extent of the restatements. Last October the company said it incorrectly dated stock options and estimated it would have to take more than $200 million in charges in connection with the grants.

The delay also means that insiders at the company have been unable to sell any shares in the meantime. In the first few months of 2006 alone, ten Rambus insiders exercised and sold more than 2.8 million shares, netting $63 million according to Thomson Financial.