The D & O Diary: Brocade Communications Settles Shareholders' Derivative Lawsuit Concerning Options Backdating

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Thursday, August 10, 2006 Brocade Communications Settles Shareholders' Derivative Lawsuit Concerning Options Backdating According to August 10, 2006 press reports, Brocade Communications settled the derivative lawsuit that shareholders had filed in federal court in San Francisco in connection with Brocade's options-award timing miscues, in exchange for an agreement to adopt certain therapeutic governance measures and the payment of $525,000 in legal fees. The settlement also involves contributions to the legal fees of the defendant directors and officers (amount undisclosed). Fifteen current and former Brocade Directors and Officers reportedly participated in today's settlement (including former Brocade director and Wilson Sonsini partner Larry Sonsini.) KPMG, Brodcade's auditor, also reportedly settled. Gregory Reyes, Brocade's former CEO, who faces criminal charge in connection with options timing problems at Brocade, did not take part in the settlement. Other shareholder lawsuits, including shareholder fraud lawsuits, remain pending. A hearing on the stipulation of settlement is scheduled for August 18. posted by Kevin LaCroix at 11:02 PM 0 Comments: Post a Comment << Home	About Me Name:Kevin LaCroix Location:Beachwood, Ohio This site was created and is written by Kevin M. LaCroix. I am an attorney and a director of OakBridge Insurance Services, a specialized insurance intermediary focused exclusively on Executive Liability coverages. View my complete profile Subscribe to The D & O Diary Enter your Email Powered by FeedBlitz Email The D & O Diary! Articles by Category Accountant Liability Fraud Detection and the Expectations Gap An Alternative to Auditor Liability Caps? 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