SEC Approves First Backdating Deal
Posted May 31, 2007 12:12 PM CDT
By Debra Cassens Weiss
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.).