Brocade Backdating Prosecution Likely to Proceed

Yet more backdating news. Attorneys for two former Brocade executives indicted on backdating related fraud charges argued in federal district court that many of the charges against them should be dismissed, The Recorder reports. The Defendants’ motion was primarily predicated on a recent decision by the 5th Circuit Court of Appeals in an Enron related case, holding that a person cannot be convicted on the theory that they deprived their employer of their honest services if they were acting in the company’s best interests. The judge presiding over the case reportedly appeared inclined to deny the motion to dismiss the charges and to allow the prosecution to proceed, at least for now.

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