Broadcom backdating stock option
The decision announced on Friday ends one of the U. District Judge Cormac Carney in December dismissed the stock options backdating case against Nicholas, after setting aside Samueli's guilty plea on charges of falsely telling investigators he was not involved in backdating. The prosecutors had needed approval from Justice Department officials in Washington to launch their appeal, and had faced a June 10 deadline.
Attorney's Office, said in a statement.
Broadcom: Lessons From the Frenzy Over Stock Options Backdating | Lane Powell PC
Backdating involves setting a stock option price at a date prior to the date the option is issued. Options usually must be granted at an exercise price no lower than the stock's fair market value on the date of the option grant.
Although backdating as such is not illegal, companies and recipients must disclose it and follow pertinent accounting and tax rules. Carney questioned whether the government ever had proof of crimes at Broadcom, which he found engaged in similar accounting practices as Apple Inc and Microsoft Corp by backdating stock options.
Carney also found U. Attorney Andrew Stolper conducted a "campaign of intimidation" to force Samueli and Tullos to plead guilty to crimes they did not commit, and cited witness intimidation by prosecutors.
The government's most sensational allegations in the case were that Nicholas, a co-founder, distributed cocaine, ecstasy and methamphetamine at parties at his homes.
But Carney dismissed the case against Nicholas, again due to findings of witness intimidation by prosecutors. And Carney in December threw out the stock-option backdating case against former Broadcom chief financial officer William Ruehle.
Nicholas and Ruehle faced life in prison if they had been convicted. Reuters is the news and media division of Thomson Reuters. Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.
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Broadcom to settle options backdating lawsuit for US$M | Network World
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SEC charges Broadcom founders, former executives with stock options backdating – The Mercury News
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