Brocade Ruling Gets Erased
It's a big deal to the tech world, because prosecutors had picked the former Brocade Communications Systems Inc. (Nasdaq: BRCD) CEO as the poster boy for the whole stock-options backdating scandal that broke in those long-gone days of the mid-2000s. (See Broadcom to Restate Earnings, Feeling Less Marvell-ous, Juniper Dusts Off Its Eraser, and Vitesse Execs Get the Axe.)
Reyes was convicted, and 20 months ago was sentenced to 21 months in prison and a $15 million fine.
Not that we can take credit for it, but the sentence matched what a plurality of Light Reading readers thought was fair: a smattering of jail time, rather than the maximum of 20 years. (See Reyes Going Down.)
Anyway, Reyes appealed the case on the basis that prosecutors held back key evidence and made false statements to the jury. The sentence and fine are on hold now, while the U.S. Attorney's Office decides whether to retry him.
— Craig Matsumoto, West Coast Editor, Light Reading