| SAN FRANCISCO - Judge Charles Breyer dealt a big blow to Brocade Communications Systems' suit against 10 of its former executives over the backdating scandal.
As reported Friday by The Recorder 's blog Legal Pad Breyer dismissed all claims against four former executives — former CFO Michael Byrd, director Mark Leslie, founder Paul Bonderson and Jack Cuthbert — for being untimely. All claims against former criminally convicted HR chief Stephanie Jensen were also dismissed.
Breyer also pared down the company's accusations against other former executives, including knocking out a RICO claim against criminally convicted CEO Gregory Reyes.
The suit, which seeks to recover damages caused by the backdating scandal at Brocade, was originally filed as derivative lawsuits by plaintiff lawyers Frank Bottini of Johnson Bottini and Marc Umeda of Robbins Umeda & Fink.
A special litigation committee advised by Dewey & LeBoeuf's Ralph Ferrara, a well-known East Coast securities defense lawyer, decided to take up claims against the large group of former Brocade brass. Ferrara filed a 282-page amended complaint on behalf of Brocade with wide-ranging allegations, including the racketeering claim against Reyes.
Ferrara did not return repeated calls seeking comment. The various counsel for the defendants greeted the order (.pdf) with enthusiasm.
"We're delighted with the ruling," said John Potter of Quinn Emanuel Urquhart Oliver & Hedges who represented Byrd.
"We're pleased with the decision," said Jahan Raissi, a Shartsis Friese lawyer who represented Bonderson.
Although Ferrara and his team suffered a blow with Friday's order, they were able to extract a $9.5 million settlement from former Brocade board member Larry Sonsini and his firm Wilson Sonsini Goodrich & Rosati before filing the amended complaint in August.
