July 20, 2007 |
A U.S. judge left up in the air Thursday whether he would dismiss fraud charges against former Brocade Communications Systems Inc. Chief Executive Gregory Reyes -- the first CEO prosecuted in a stock option backdating case. U.S. District Judge Charles Breyer in San Francisco said he may even wait to decide until after the jury in the case returns a verdict. Court rules allow judges to consider dismissal while a trial proceeds or to dismiss cases after a jury renders a verdict, he said.
August 19, 2009 |
In a blow to the government, the first chief executive found guilty by a jury of backdating stock option grants has had his conviction overturned. Gregory Reyes, former CEO of Brocade Communications Systems Inc. of San Jose, will get a new trial after a federal appeals court in San Francisco ruled that his case was tainted by prosecutorial misconduct. Reyes, 46, was convicted in 2007 of conspiracy and fraud for backdating employee option grants in 2001 and 2002. The practice, widespread particularly in the technology industry, was a way to cherry-pick favorable exercise prices for the options, boosting their value to employees.
May 17, 2005 |
Data storage equipment maker Brocade Communications Systems Inc. said Monday that it overstated earnings from 2001 through 2004 by as much as $52 million because of improper accounting of its stock option expenses and said it was the target of a government probe. The San Jose company said it was cooperating with a joint investigation of its stock option practice by the Justice Department and the Securities and Exchange Commission. The restatements include as much as $3.
August 8, 2007 |
In a significant slap at Silicon Valley, the first chief executive to stand trial for the backdating of stock options was found guilty Tuesday of securities fraud and making false statements. Gregory L. Reyes, former CEO of Brocade Communications Systems Inc. of San Jose, faces the possibility of 20 years in prison and a $5-million fine for rewarding key employees with options to buy company stock at artificially low prices.
June 19, 2007 |
Brocade Communications Systems Inc.'s former chief executive approved backdated stock option grants to lure employees during Silicon Valley's boom years, but he did not defraud investors, his lawyer said Monday. Former Brocade CEO Gregory Reyes' defense disputed government fraud charges and stressed that he did not personally profit from such practices. "Greg Reyes did not pocket a penny from the stock options.
June 1, 2007 |
Two Silicon Valley companies, including a unit of Hewlett-Packard Co., have been fined a total of $35 million for alleged manipulation of stock options, marking a new phase in the government's more-than-yearlong investigation of such conduct. The Securities and Exchange Commission announced Thursday that San Jose-based Brocade Communications Systems Inc. and HP's Mercury Interactive unit had become the first firms to be fined in the SEC's crackdown on option backdating.
July 22, 2006 |
The government's first charges in a stock-option backdating scandal have put corporate America on notice: It's time to 'fess up, if you haven't already. What's more, prosecutors are signaling that they have a low threshold for what qualifies as a crime in corporate pay abuses, some legal experts said. The criminal and civil charges filed Thursday against former Brocade Communications Systems Inc. Chief Executive Gregory L.
April 20, 2006 |
In an annual ritual that companies have come to dread, the California Public Employees Retirement System on Wednesday named six firms that it says must improve financially and adopt more enlightened rules for corporate governance. The companies on the 2006 edition of CalPERS' "Focus List" are Brocade Communications Systems Inc., Cardinal Health Inc., Clear Channel Communications Inc., Mellon Financial Corp., OfficeMax Inc. and Sovereign Bancorp.
January 10, 2008 |
A federal judge denied a new trial for former Brocade Communications Systems Inc. Chief Executive Gregory Reyes, the first top executive convicted of backdating stock options. District Court Judge Charles Breyer rejected arguments that a government witness recanting her testimony amounted to new evidence. Reyes was convicted in August of 10 charges of conspiracy, fraud, making false filings and falsifying records for backdating grants and hiding the practice from auditors and investors, inflating Brocade's revenue.
March 24, 2009 |
California's two pension funds said they would support a proxy vote at Brocade Communications Systems Inc. to ease company rules that limit shareholders' ability to change bylaws. The California Public Employees' Retirement System and the California State Teachers' Retirement System said they were seeking support from other shareholders to approve the resolution at the San Jose company's annual meeting April 15. Brocade Communications is the largest maker of switches for data-storage networks.