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19-Oct-2016 22:33

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Last week the Do J brought criminal charges against two Brocade Communications Systems executives, while the SEC filed a civil suit against the same two and the CFO.As expected, the charges focused on backdating stock options by doctoring employment documents, neglecting to record the stock-option expense on the company’s books, and misleading investors.The Corporate Library includes the technology company in its table of “51 linked scandal companies sorted by director” by showing that Blue Coat CFO Kevin Royal is a director of both his company and Novellus Systems. He was the CFO at Novellus from 2002 to April 2005, a period after the time that its practices of granting stock options have been questioned, Novellus said in a response to the study that the company E-mailed to on October 25.While Royal joined the company in 1996 and held several financial positions before becoming the finance chief, he never served on the Novellus board. The authors of The Corporate Library study repeatedly use the word “director” in describing the kinds of individuals that are under discussion.

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Moreover, some of the people listed are not directors at all, but officers of their company.

Companies that are not being probed by the Securities and Exchange Commission or the Department of Justice told that it is unfair to group them with organizations that have received formal inquiries from the SEC and the Do J.

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