UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
____________________
FORM
8-K
CURRENT
REPORT
PURSUANT
TO SECTION 13 OR 15(d) OF THE
SECURITIES
EXCHANGE ACT OF 1934
Date
of
report (Date of earliest event reported): January 16, 2008
____________________
Tegal
Corporation
(Exact
name of Registrant as Specified in its Charter)
Delaware
(State
or
other jurisdiction
of
incorporation)
000-26824
(Commission
File
Number)
68-0370244
(I.R.S.
Employer
Identification
No.)
2201
South McDowell Boulevard
Petaluma,
CA 94954
(Address
of Principal Executive Offices)
(707)
763-5600
(Registrant’s
telephone number, including area code)
_____________________________________________________
(Former
Name or Former Address, if Changed Since Last Report)
Check
the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions (see General Instruction A.2. below):
o Written
communication pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
o Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
|
o
|
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17
CFR
240.14d-2(b))
|
|
o
|
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17
CFR
240.13e-4(c))
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ITEM
7.01 REGULATION
FD DISCLOSURE.
On
January 22, 2008, Tegal Corporation
(the “Company”) issued a press release announcing the
settlement of a fee dispute with its former attorneys. A copy of the
press release is attached to this report as Exhibit 99.1 and incorporated herein
by reference. For more information, see Item 8.01 below.
ITEM
8.01. OTHER
EVENTS.
On
January 16, 2008, the Company and its wholly owned subsidiary, Sputtered Films,
Inc. (“SFI”), received a Notice of Acceptance of
Written Offer to Compromise from Keker & Van Nest LLP
(“KVN”), one of the two law firms that had represented
SFI in its lawsuit against Sergey Mishin, Advanced Modular Sputtering
(“AMS”), Agilent Technologies, Inc., Avago
Technologies U.S., Inc., Avago Technologies Wireless (U.S.A.) Manufacturing,
Inc. and other defendants, which was settled in November 2006 (the
“AMS Settlement”). As previously disclosed
in the Company’s SEC filings, KVN and Gonzalez & Leigh LLP
(“G&L”) claimed they were entitled, as a result of
the AMS Settlement, to receive contingent fees from the Company
and SFI. KVN had claimed it was owed fees in the amount of
approximately $6.72 million; G&L had claimed that it was owed
approximately $2.25 million. As previously disclosed in a Form 8-K filed
with the SEC on August 20, 2007, the Company executed a Mutual General Release
and Settlement Agreement dated August 15, 2007 with G&L and paid G&L
$995,000 pursuant to that agreement. In connection with KVN’s
acceptance of the Company’s Written Offer to Compromise and the execution of a
mutual general release, dated as of January 18, 2008, the Company has paid
KVN
$3.8 million.
As
previously disclosed in the Company’s SEC filings, the Company had placed $19.5
million, representing the gross cash proceeds from the November 2006 settlement,
into suspense. As a result of the developments described above, the
Company will eliminate the suspense along with other liabilities related to
the
AMS Settlement, and the net proceeds will be taken to other income in the fiscal
fourth quarter ending March 31, 2008.
ITEM
9.01 FINANCIAL STATEMENTS AND EXHIBITS.
(d) Exhibits.
Exhibit
Number
Description
99.1 Press
Release dated
January 22, 2008.
SIGNATURES
Pursuant
to the requirements of the
Securities Exchange Act of 1934, the registrant has duly caused this report
to
be signed on its behalf by the undersigned hereunto duly
authorized.
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Date: January
22, 2008
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TEGAL
CORPORATION
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By:
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/s/
Christine T. Hergenrother
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Name:
Title:
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Christine
T. Hergenrother
Chief
Financial Officer
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EXHIBIT
INDEX
Exhibit
Number
Description
99.1 Press
Release dated
January 22, 2008.