Securities Law

SEC Approves First Backdating Deal

Brocade Communications Systems Inc. will pay $7 million to settle backdating allegations made by the Securities and Exchange Commission.

Bloomberg News quotes anonymous sources as saying SEC commissioners voted to approve the deal last week after an internal debate over how much to penalize companies that backdate stock options to give favorable treatment to executives.

The deal is the first in the backdating scandals that have plagued more than 100 companies, and paves the way for resolution of additional cases, according to the Wall Street Journal (sub. req.).

We welcome your comments, but please adhere to our comment policy and the ABA Code of Conduct.

Commenting is not available in this channel entry.