SAN FRANCISCO (Bloomberg) — Bermuda-based Marvell Technology Group Ltd. agreed to pay shareholders $72 million to settle claims the maker of chips for computers and mobile phones improperly backdated stock-option grants.

The agreement was reached after Marvell's fiscal first quarter ended on May 2, requiring the company to update results reported May 28, Marvell said yesterday in a statement. The settlement increased the quarter's net loss to $111.5 million, or 18 cents a share, from $39.5 million, or six cents.

Final approval of the settlement from a federal judge in California "would mark the end of all shareholder litigation" against Marvell over stock-option backdating, the Hamilton, Bermuda-based company said in the statement.

Marvell recorded a $10 million expense in the first quarter of fiscal 2008 to settle US Securities and Exchange Commission claims it improperly backdated stock-option grants to employees. The company misled investors by not reporting compensation expenses for options granted at below-market prices from 2000 through 2006, allowing Marvell to overstate income by $326 million during the period, the SEC said.