Read The Recorder‘s roundup of the stock-option backdating scandal. There won’t be a test later … but there might be a subpoena.
Bottini’s firm is co-counsel in another Brocade derivative suit in state court. He said the firm decided to file the federal action when a plaintiff suggested that there were additional claims to pursue. (Another federal action had already been filed by other lawyers, but has stalled, Bottini said.)
The aggressive 162-page complaint (.pdf) includes RICO claims against a number of defendants as well as the new accusations against Wilson.
With regard to the proposed settlement of state and federal derivative cases at issue, the complaint says that Wilson helped craft a 2006 proposal that would’ve released everyone – except convicted former CEO Gregory Reyes – from liability in return for $525,000 in attorneys fees and corporate therapeutics. It also would’ve released Wilson from any claims, according to the complaint. The proposal has yet to be approved.
“If they had negotiated a good settlement, things might’ve been a little different,” Bottini said.
The complaint also says that before the proposed settlement, Wilson counseled Brocade to sell itself to Cisco to get rid of its backdating problems.
The plaintiff wants Wilson to pay Brocade restitution and disgorgement of fees.
