Reyes Convicted in Backdating Case. Who’s Next?

By now you have likely heard that former Brocade CEO Greg Reyes was convicted today on all counts in the Government’s misguided options backdating related prosecution. Larry Ribstein of Ideoblog has this excellent post in which he critically assesses the weak premise that undegirds the Government’s pursuit of these cases. Ribstein raises the possibility that the Government may now be emboldened to pursue further cases, possibly against such high profile executives as Apple CEO Steve Jobs. There are reasons to believe that the Government may not take such steps, not the least of which is the live possibility that some or all of the Reyes verdict may very well not withstand post-trial motions, let alone appeal. It is certain, however, that the continuing criminalization of poor business judgment is a very troublling trend indeed.