Former Brocade CEO Settles SEC Backdating Suit

Law360, New York (August 15, 2011, 6:37 PM EDT) -- Former Brocade Communications Systems Inc. CEO Gregory L. Reyes, who was convicted of illegal stock option backdating, has agreed to pay nearly $850,000 to settle the U.S. Securities and Exchange Commission's case against him, the SEC told a California federal judge on Monday.

In a letter to U.S. District Judge Charles R. Breyer, the SEC said Gregory L. Reyes will pay a $550,000 fine and $150,000 disgorgement of profits he earned by allegedly backdating “in-the-money” stock option grants so they looked “at-the-money.”

With interest, the fine...
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