Tuesday, December 15, 2009
A federal district court dismissed fraud charges against Broadcom co-founder Henry T. Nicholas III and former CFO William J. Ruehle stemming from backdating stock options, on grounds of prosecutorial misconduct. The judge also dismissed an SEC civil suit against four Broadcom executives.
The judge found that the prosecutors tried to prevent three key defense witnesses from testifyinng, improperly contacted lawyers for defense witnesses, and leaked information about grand jury proceedings to the media. NYTimes, Charges Dismissed Against 2 Broadcom Executives.