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Brocade Settles With SEC Over Options Backdating

Law360 (May 31, 2007, 12:00 AM EDT) -- Brocade Communications Systems Inc. on Thursday agreed to pay $7 million to settle U.S. Securities and Exchange Commission allegations that it committed fraud by allowing its former chief executive officer and others to backdate stock options and conceal their behavior by falsifying documents.

"This enforcement action clearly demonstrates the SEC will use all the weapons in our arsenal, including significant corporate penalties, to protect investors and combat fraudulent stock option backdating," said SEC Chairman Christopher Cox.

In a lawsuit filed in the U.S. District Court for...
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