Backdating involves retroactively setting a stock option's exercise price to a low point in the stock's value, boosting profit when the shares are sold.
Ruehle's defense and the cumulative effect of that misconduct has distorted the truth-finding process and impeded the integrity of the trial," Carney said Tuesday. "I say, absolutely not." Defense attorneys wept after the ruling as Samueli and Nicholas embraced nearby.
Broadcom’s option backdating issues were of course recently in the news in connection with Judge Cormac Carney’s dramatic December 15, 2009 dismissal of the criminal indictments that were pending against several individual former directors and officers of the company.
With the dismissal of the criminal charges and the settlements of the derivative and class action cases, Broadcom seems one step closer to finally putting its option backdating issues to rest.
(AP Photo/The Orange County Register, Mindy Schauer) ** NO SALES, MAGS OUT, LA TIMES OUT ** less FILE - In this June 5, 2008 file photo, Broadcom's former chief financial officer, William J.
Ruehle, left, and his attorney Richard Marmaro leave the Ronald Reagan Federal Courthouse in Santa Ana, Calif. more A federal judge has dismissed fraud and conspiracy charges in the stock-option backdating case against Broadcom Corp. District Judge Cormac Carney also asked prosecutors to explain why a separate drug indictment against Nicholas should not also be thrown out, and he dismissed a civil case the Securities and Exchange Commission filed against four Broadcom executives.