GO
Loading...

Enter multiple symbols separated by commas

Brocade to Settle Options Case with $7 Million Pay Out: WSJ

Brocade Communications Systems agreed to pay a $7 million penalty to settle allegations it improperly issued stock-option grants, the Wall Street Journal reported on its Web site on Thursday.

The settlement with the U.S. Securities and Exchange Commission could be announced this week, the paper said, citing unnamed sources.

Brocade spokeswoman Leslie Davis declined to confirm the settlement. "We do not have any further updates at this time," she said.

The SEC could not be reached immediately.

Brocade first struck a deal with the SEC to pay $7 million in March 2006, the paper said, adding the settlement was held up as the number of companies under investigation for backdating options increased.

Backdating is a practice in which companies change the grant dates of stock options to boost their value to top executives. The practice is illegal if companies do a poor job of disclosing it or improperly account for it.

More than 180 companies have conducted internal inquiries into their options practices or are under investigation by U.S. authorities over their stock-options practices.

Contact U.S. News

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    Please choose a subscription

    Please enter a valid email address
    To learn more about how we use your information,
    please read our Privacy Policy.

Don't Miss

  • Jessica Alba

    The actress' company got burned after consumers came out in droves, saying the company's sunscreen doesn't provide much sun protection at all.

  • Toy guns are displayed after being confiscated at airport security checkpoints at the JFK International Airport in New York City.

    A handful of big retailers agreed to keep realistic-looking toy guns off their shelves as part of a deal with the New York attorney general's office.

  • What a robotic sniper might look like.

    A global arms race of robotic killing machines is inevitable if countries pursue autonomous weaponry, experts said.

U.S. Video