SEC Sues Another Ex-Brocade Exec Over Backdating

Law360, New York (August 17, 2007, 12:00 AM EDT) -- Federal regulators have accused another former Brocade Communications Systems Inc. executive of fraud for allegedly helping to conceal the computer storage networking company’s backdating of stock options grants.

The U.S. Securities and Exchange Commission claimed on Friday that Michael Byrd, Brocade’s chief financial officer from 1999 to 2001, was aware that the company was not properly accounting for certain options awards to employees, but omitted the compensation expenses incurred from the grants in the financial reports disclosed to investors.

The SEC’s suit against Byrd in the...
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