The settlements are likely to set a pattern for future cases.The SEC is reported to have undertaken at least 140 backdating-related investigations.According to the complaint, Mercury stopped the shipment of its products once revenue targets for a period had been achieved, pushing the recognition of the revenue into subsequent periods.
Reyes and other former executives, who repeatedly granted backdated stock options, misstated compensation expenses, and concealed the conduct by falsifying documents.O Chief Executive Gregory Reyes, 44, may be decided soon by a jury that began deliberating his fate on Monday.A guilty verdict is anything but certain, analysts said, and the judge has said he could dismiss the charges in case of a conviction.The company announced the in-principle deal with lead plaintiffs in a statement Monday, but the settlement remains subject to final approval by the U. District Court for the Northern District of California.
Brocade is one of eight companies in the past year to settle lawsuits brought by shareholders alleging stock options backdating led...
The Commission alleged that Mercury Interactive and the former executives “perpetrated a fraudulent and deceptive scheme” from 1997 to 2005 to award themselves and other employees undisclosed, secret compensation by backdating stock-option grants, failing to record hundreds of millions of dollars of compensation expense, and falsifying documents to further this scheme.