BACKDATED STOCK OPTIONS
 

Shapiro Haber & Urmy LLP Now Investigating Stock Options Backdating Practices By Brocade Communications Systems

Shapiro Haber & Urmy LLP is currently investigating stock options backdating practices at over 100 companies, including Brocade Communications Systems.

Regarding Brocade Communications System, as reported in The Wall Street Journal, "The Journal reported on June 18 that federal prosecutors have warned Gregory Reyes, the former CEO of the San Jose, Calif., storage-networking firm, that he could face criminal charges related to stock-options-timing practices. The SEC has warned that he could face civil charges. Mr. Reyes stepped down as CEO in January 2005, at the same time the company announced it would restate income for prior years due to improper accounting for past options grants. The Brocade case, which predated the recent explosion in options-related probes, has been under investigation by the SEC and the U.S. Attorney for the Northern District of California for at least a year. On July 20, prosecutors accused Reyes of backdating options he doled out as a "committee of one" to hundreds of employees, in the first criminal charges filed in the backdating probes. Stephanie Jensen, a former human-resources director, is accused of helping Reyes with the scheme.  On May 31, 2007, Brocade agreed to settle SEC charges and pay $7 million.”

If you are a current stockholder in Brocade Communications Systems and would like to learn about your legal rights in seeking to remedy improper options backdating at the company, please click here or call 800-287-8119 to contact our paralegal, Victoria Bird.  Our initial consultation and case assessment will be done at no charge or obligation to you.

Shapiro Haber & Urmy LLP is a leading force in bringing lawsuits on behalf of shareholders who own stock in corporations implicated in the rampant and ongoing stock options backdating scandal.  Led by attorneys Edward F. Haber and Michelle H. Blauner, our firm has already filed numerous cases, in both state and federal courts, concerning the improper backdating of stock options granted to officers, directors, and executives who appear to have used backdated stock options to create for themselves tens, or even hundreds, of millions of dollars in profit and unrealized gain at the direct expense of their corporations.

To learn more about our efforts targeting unlawful corporate stock options practices at corporations nationwide, please click here to view our main stock options backdating webpage, which contains detailed explanations of stock options, option backdating, and why option backdating can be illegal.  Also featured are complaints filed by our firm in other stock options backdating cases, as well as a full list of all the corporations we are currently investigating.