Federal Judge Axes Broadcom Case over Prosecutorial Misconduct

Citing prosecutorial misconduct, a federal judge in Southern California has axed a stock options backdating case against two Broadcom Corp. executives.

U.S. District Judge Cormac Carney found that the government leaked grand jury information to the media, improperly contacted attorneys for defense witnesses and tried to prevent three key witnesses from testifying, according to the Associated Press and the Orange County Register.

His dismissal today of the charges against co-founder Henry Nicholas III and acquittal of former Chief Financial Officer William Ruehle follows his earlier vacation of a guilty plea in the same case by Henry Samueli, another co-founder of the company.

Ruehle and Nicholas had been accused in an alleged conspiracy to inflate Broadcom earnings through the unreported backdating of stock options given to company employees.

Carney asked the government to show cause why he should not also dismiss a separate drug case against Nicholas.

Earlier coverage:

ABAJournal.com: "Ex-Broadcom CEO Indicted in Options Backdating—and Drug—Case"

ABAJournal.com: "Judge: Broadcom Co-Founder’s Plea Deal Suggests Justice is for Sale"

ABAJournal.com: "Objections to a Prosecutor’s Phone Call Benefit Ex-Broadcom GC"

ABAJournal.com: "Judge Mulls Acquittal in Broadcom Case"