Brocade shareholders, take note: a federal court may be looking for you
A Federal court has ordered that those who purchased shares of Brocade Communication between May 18, 2000 and May 15, 2005 be notified of the certification of a class settlement in a shareholder lawsuit brought against the San Jose networking firm, whose former chief executive , Greg Reyes, was found guilty in the nation’s first criminal trial related to stock-option backdating.
In May, the United States District Court for the Northern District of California in San Francisco found that Brocade was financially liable for Reyes’ conduct. Brocade agreed to the $160 million settlement at that time as an alternative to a trial of the suit brought by pension funds and other institutional investors. KPMG, the company’s auditor at the time, agreed to pay $98,500 to reimburse the shareholders for a material portion of the costs of notifying potential members of the class and administering the claims.
An estimated 282 million “damaged” Brocade shares were purchased during the class period. Plaintiffs were seeking $0.81 per share, which would have totaled nearly $228 million in damages. The final figure comes out to about 57 cents a share, of which some 14 cents will go to the lawyers.
If you are an injured party — get out your trading confirmation orders — there’s even a Web site to help you out.
There’s one bit of a silver lining for Reyes in the matter, along with some of his fellow defendants: as part of the settlement, all claims against him, along with former Brocade chief financial officer Antonio Canova and directors Larry Sonsini, Seth Neiman, and Neal Dempsey, were dismissed with prejudice.
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There’s one bit of a silver lining for Reyes in the matter, along with some of his fellow defendants: as part of the settlement, all claims against him, along with former Brocade chief financial officer Antonio Canova and directors Larry Sonsini, Seth Neiman, and Neal Dempsey, were dismissed with prejudice.
I hope the judge doesn’t rule in their favor….the officers are trying to get their hands clean by having Judge Breyer dismiss (all charges) with prejudice….basically so they shut up and leave them alone…they probably will try and bribe him . I wouldn’t put it past them if they do…because the judge is 67 he could accept a bribe….
Well Sonsini is an attorney and is trying to get his ass wiped from all charges. When you are outside of the courtroom, lawyers and judges are all friends. It’s a big show inside but not out. They all play golf with one another and all of them are like brothers. They usually know beforehand what will or won’t take place. Its one big game is what it is. Sonsini is trying to show that he is such a generous fellow because he gave to schools. Dempsey is the same way. He donated or pledged 13 million dollars to the University of Washington, however, has yet paid anything. He basically used the donation as a write off. If criminal charges are brought against him, he will say “how generous of a guy he really is” and there could be now way he is a crook!