Backdating Case Against Brocade Execs Is Sufficient: Judge

Law360, New York (August 10, 2006, 12:00 AM EDT) -- The regulatory assault on options backdating is still on track after a federal judge chose not to dismiss the criminal case against two former executives at data storage technology firm Brocade Communications Systems Inc.

Lawyers for the pair argued unsuccessfully that federal prosecutors offered only uncorroborated conclusions by failing to establish probable cause or to prove the veracity of unidentified hearsay witnesses.

Magistrate Judge Edward M. Chen, in the U.S. District Court for the Northern District of California, said there was sufficient indication of liability in...
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