The last bit of the Brocade backdating mess is gong to be settled in arbitration.
Dewey & LeBeouf’s Ralph Ferrara has been pursuing ex-Brocade execs — with mixed results — to pay back the company for money lost during the huge backdating scandal at the company. Although half of the ten execs got themselves dismissed from Ferrara and Brocade’s derivative suit, there were still five others, including prison-bound former CEO Greg Reyes, remaining in the case. Former CFO Antonio Canova and another exec settled out of the case for a few hundred grand. Now, Reyes and two former Brocade directors, Seth Neiman and Neal Dempsey have agreed (.pdf) to be judged by a three-arbitrator panel.
What do you think? Is it better for Brocade or the execs? Certainly, Reyes didn’t fare too well before a jury last time around.
— Zusha Elinson