Everyone was a little stunned by the way Dewey & LeBeouf’s Ralph Ferrara tried to sue the pants off of Brocade execs and directors earlier this year. Representing Brocade, Ferrara sued 10 former top brass, including pokey-bound CEO Greg Reyes, to recover the millions the company lost in the backdating scandal.
Now it’s Ferrara’s turn to be a little stunned. In an order (.pdf ) filed late Friday afternoon, Judge Charles Breyer dismissed all claims against four of those execs, former CFO Mike Byrd, director Mark Leslie, founder Paul Bonderson, and Jack Cuthbert. Breyer also dismissed a number of claims against other defendants like Reyes and former HR Chief Stephanie Jensen.
Ferrara, a well-known East Coast securities defense lawyer, advised the Brocade special litigation committee earlier this year as it deliberated whether to take up claims made in derivative suits filed by plaintiff lawyers Frank Bottini and Marc Umeda. Brocade chose to take up the claims and Ferrara took control of the derivative suit, exacting an $9.5 million settlement from Larry Sonsini and Wilson Sonsini, who’d both been named.
Legal Pad wonders how Larry Sonsini and his firm are feeling now. Might they also have won a motion to dismiss and saved $9.5 million?
— Zusha Elinson