Broadcom backdating settlement

Posted by / 24-Jun-2017 16:36

Broadcom backdating settlement

Nicholas’s grasp of the business was superior, and it was known that if he asked a question, he knew more about the area than you did. In this environment, Nicholas’s entrepreneurial approach extended to options grant practices — and since Nicholas and co-founder Henry Samueli were the board’s entire options committee, this was not very surprising.

Hochman posted on Forbes.com, “The government’s stock-option charging decisions became a wheel of misfortune.

It was an omission of enormous significance to the trial of William Ruehle: “Most accounting experts will admit that different interpretations of option accounting rules existed prior to 2002,” he writes.

“But four years later, by 2006, the government’s auditors and lawyers started to interpret the old rule APB 25 in a very strict way and looked back several years to see that paperwork matched the newer, stricter interpretation.”And that would change everything.

Ruehle and current or former officers of Irvine, Calif.-based Broadcom Corporation, engaged in a scheme to backdate stock options at the company from 1998 to 2003.

The Commission’s action was stayed at the request of the United States Attorney’s Office pending the criminal trial….

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There was simply no telling which company would be sued or which individual would be prosecuted.

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