Read The Recorder‘s roundup of the stock-option backdating scandal. There won’t be a test later … but there might be a subpoena.
Interview notes collected during an internal investigation could be helpful to the defense when cross-examining government witnesses, if those witnesses make statements that conflict with what they told company investigators.
But the benefits of such statements can cut both ways. Many observers believe prosecutors severely damaged Reyes’ credibility when they revealed a statement Reyes gave during the Brocade investigation. Reyes said he did not backdate, a statement that conflicted with later defense arguments.
Patel said that if the government or Roberts’ attorneys were the source of the discovery dispute, she would “cajole” them toward a solution. But since third parties who were not before her on Monday are involved, Patel said, she would have to “see what happens,” i.e., whether the parties can work it out themselves, or not.
