The 9th Circuit has thrown out former Brocade CEO Gregory Reyes' criminal conviction for backdating stock options and ordered a new trial because the prosecution misled jurors with false assertions during closing arguments. The reversal destroys the government's highest-profile conviction of an executive for the backdating scandal that swept tech companies this decade. Convicted in 2007 of conspiracy and fraud for backdating employee stock options, Reyes was sentenced to 21 months in prison and given a $15 million fine.
9th Circuit Tosses Reyes' Backdating Conviction due to Prosecutorial Misconduct
August 19, 2009