Brocade Moves Against Former Executives
Brocade's Gregory Reyes Denied New Trial
against ten former executives and board members were filed late last week. Law firm Wilson Sonsini, along with name partner, Larry Sonsini (also a former Brocade board member) have paid Brocade $9.5 million to ensure exclusion from the recently filed lawsuit. Lots more at Law.com.
Labels: Brocade, Gregory Reyes, Larry Sonsini, racketeering, Wilson Sonsini
Things Looking Up for Brocade CEO, Reyes
This despite the fact that a major witness for the prosecution has recanted portions of her testimony
. According to U.S. District Court Judge Charles Breyer, who made the call, the witness's statements would not have had an impact on the outcome of the trial. Reyes, you may recall, as the distinction of being the first executive to go to trial of improper accounting of stock option grants.
Labels: backdating, Brocade, Gregory Reyes, stock options
Gregory Reyes just had a good day.
Federal prosecutors Move Against Financial Advisor of Broadcom Co-Founder
The former Brocade CEO was recently convicted on charges relating to stock option backdating and since then his future had been looking, lets face it, on the bleak side. But that was before he got some reasonably good news from federal Judge Charles R. Breyer.
Breyer elected to delay Reyes' sentencing until after the conclusion of the trial Stephanie Jensen, the former Brocade head of human resources and an alleged co-conspirator. Several charges against Jensen were also dropped. All this is seen as an indication that Reyes expected 10-year plus prison terms might be shrinking.
More on the Reyes sentencing from Workforce Management.
Labels: backdating, Brocade, Gregory Reyes, Stephanie Jensen, stock options
Brocade Conviction Is First Successful Criminal Prosecution of Stock Option Backdating
Federal prosecutors have moved a step closer to Broadcom co-founder, Henry T. Nicholas III
, filing criminal charges against California attorney Craig Steven Gunther, who spent several years managing Nicholas's personal finances.
The Gunther indictment doesn't specifically mention stock option backdating. Early in the year the company made a massive $2.5 billion restatement resulting from backdating irregularities
(the original estimate was more like $704 million) and saw its CFO resign
as a result of the issues.
More on the Gunther indictment via Reuters.
Labels: backdating, Broadcom, Craig Steven Gunther, Gregory Reyes, Henry Nicholas, stock options
Gregory L. Reyes
, former CEO Brocade Communications Systems, has achieved the dubious distinction of becoming the first executive to be convicted
on criminal charges relating to improper stock option backdating disclosures. Sentencing for Reyes is obviously still to come (Npvember 21, if you are keeping score) but he could face as much as 20 years in prison. While some expressed surprise
at the guilty verdict, it can't be a good omen
for the 200+ other companies facing similar scrutiny and potential prosecution.
Labels: backdating, Brocade, convicted, Gregory Reyes, stock options