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Article: Brocade's legal bills outpace its profits Options scandal exacts a steep price MARKETPLACE by Bloomberg
- Article from:
- International Herald Tribune
- Article date:
- October 11, 2007
- Author:
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Karen Gullo Bloomberg News
International Herald Tribune
10-11-2007
Brocade's legal bills outpace its profits Options scandal exacts a steep price MARKETPLACE by Bloomberg
Byline: Karen Gullo Bloomberg News
Edition: 4
Section: FINANCE/BUSINESS
SAN FRANCISCO --
The chief executive of Brocade Communications Systems, Michael Klayko, said in January that he had put the options backdating scandal of his predecessor, Gregory Reyes, "behind him." But Reyes's legal bills have not gone away. Brocade, which paid $7 million to settle a U.S. stock options case, is paying the lawyers for Reyes, who was convicted of fraud. Defense costs have contributed to more than $38.4 million in legal fees so far this ...