Read The Recorder‘s roundup of the stock-option backdating scandal. There won’t be a test later … but there might be a subpoena.
“Steve,” wrote a KLA employee in an e-mail dated Sept. 12, 2000, “you need to take this forward for signature. It has to have the 8/13 date.”
The e-mail also told Beyer to get the form signed by only two of the company’s three options committee members, Gary Dickerson and Kenneth Schroeder. “Do not let it go to Ken Levy,” the message continued.
Beyer then admitted that the e-mail did show that KLA engaged in retroactive pricing of options � and also that he had been demoted by Jensen and hadn’t liked working with her.
Over the last few days, there’s been plenty of talk among defense lawyers about the intertwined nature of the options cases, both in terms of employees moving between companies and also in the limited number of white-collar defense lawyers with multiple clients.
In the Brocade case, for example, defense lawyers have repeatedly tried to blame ex-CFO Michael Byrd, who is cooperating with the government � and who was previously employed at Maxim Integrated Products, another company with options woes. And Colleen Burgess, a former Brocade HR employee and the government’s first witness, said Monday that she had earlier worked at Apple Computer, another options-challenged tech firm.
At KLA, the former general counsel, Lisa Berry, later went to Juniper Networks, another company with an ongoing options investigation.
And then there’s the crossover between attorneys. In addition to Marmaro’s roles with KLA and Reyes, Jensen is represented by Keker & Van Nest, the same firm that represents former KLA CEO Schroeder.
Orrick, Herrington & Sutcliffe, which represents the former Brocade HR employees, also represents KLA’s Dickerson as well as Berry.
While the Brocade trial Tuesday shed a brief spotlight on KLA, that case has been quietly moving forward for months. Lawyers familiar with the case said it appears that Schroeder � whom Marmaro singled out in his probe � remains a government target, whereas Levy seems less likely to be charged.