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Prosecution and Defense of Stock Option Backdating Cases

By Steven F. Reich and Andrew C. DeVore
September 27, 2007

After Michael E. Clark reviewed then-emerging issues in the area of stock option backdating in last December's issue of Business Crimes Bulletin, former Brocade Communications Systems, Inc. CEO Gregory Reyes was found guilty of backdating-related crimes despite what most observers agree was a vigorous and well-funded defense. United States v. Reyes, No. 06-0556 (N.D. Cal., jury verdict, Aug. 7, 2007). This article discusses four critical issues likely to influence future backdating cases.

Backdating Is Not a Garden Variety Stock Fraud

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