Broadcom and backdating
Hock Tan, Broadcom’s chief executive, said on a conference call to discuss the deal that it will help Broadcom “capture the growing cloud opportunity” and was being made in order to capitalize on growing trends in its customer base for more-secure storage infrastructure.
As part of the acquisition, Tan said Broadcom plans to sell off Brocade’s IP (internet protocol) networking business and retain the company’s fiber channel storage networking switching technologies.
For updated news on this story read part two of this story here.
With the Anaheim Ducks organization worrying about prospects, veterans considering retirement, and contract issues with players this offseason, owner Henry Samueli is worrying about the justice system. Nicholas III, his former engineering student at UCLA. Ruehle is just as unlucky—Broadcom’s former CFO (chief financial officer) has been indicted on the options charges as well. Samueli’s plea agreement, expected to be filed later today, will not require the him to testify on behalf of the government.
Please be sure to read the Notice to fully understand your rights.
SAN JOSE — Broadcom said Wednesday it will acquire networking-equipment maker Brocade Communications Systems for .5 billion in a deal that the communications chipmaker said will improve its position in the cloud-based data-storage technology market.
In addition to its switching-technology products, Brocade is also known for the controversy more than a decade ago involving former CEO Gregory Reyes.
.99 Sir Thomas More: You threaten like a dockside bully. Sir Thomas: Like a minister of state, with justice. Left-wing journalists today have many incentives to launch rich-hunts against nationally prominent businessmen, regardless of guilt: such frenzies bring journalists raises, praises, prizes, and book contracts.Reyes was convicted on 10 counts of backdating stock options illegally in 2007 and in 2010, was sentenced to 18 months in prison and fined million. As a result, journalism today is populated by innumerable muckrakers, and the Justice Department by hundreds of “dockside bullies.”Bill Ruehle’s bad luck was to discover this first-hand. Ruehle was the chief financial officer (CFO) of Broadcom Communications, an Internet company founded in 1991 by “a quiet electronics engineering professor from UCLA (Henry Samueli) and his not-so-quiet student (Henry Nicholas).” Broadcom first turned a profit in 1994: revenues were .6 million.This Settlement is in addiiton to the previously approved Settlement with Broadcom (the "Broadcom Settlement"), which totalled 0.5 million.The proposed Settlement has been preliminarily approved by the Court, and Notice Packets are being mailed to potential Class Members.
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They each threw in $5,000 and worked out of Nicholas' Redondo Beach home, moving to Irvine four years later, and taking the firm public three years after the Irvine move. It helped make Samueli one of the most influential and richest men in Southern California, which gave him the ability to buy the Anaheim Ducks in 2005 for $75 million. Samueli is getting off much easier than other Broadcom executives. Nicholas III has been indicted on 24 felony counts of misdating stock options to make them more valuable to employees, of distributing drugs to associates, and spiking the drinks of certain Broadcom customers. Indeed, it would be unusual to ask him to do so, given that he has acknowledged providing false testimony to the Securities and Exchange Commission, Adkins said."It's not our custom to put perjurers on the stand," he said.