Brocade Backdating Trial Opens With Intent Defense

Since Gregory Reyes became the first executive to be charged in the stock option backdating scandal, worse transgressions have been alleged in several districts. But as the trial of the former Brocade Communications CEO began Monday, it became clear why his case will be a proving ground for prosecutors probing dozens of companies with options problems: The prosecution and defense agree Brocade improperly accounted for options it issued. The only argument is whether the problems amounted to criminal fraud.

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