Friday, February 5, 2010
The SEC announced that it has dropped its case involving stock options backdating against current and former Broadcom officers. Last year one defendant was acquitted of criminal charges, and the charges were dismissed against another. In addition, the presiding judge discouraged the SEC from proceeding with its civil action. As explained in the SEC's release:
On January 28, 2010, at a hearing on the Commission's motion to clarify the order dismissing its complaint, the Court expressed its view that the evidence adduced during Ruehle's criminal trial and the courts ruling precluding the testimony of Broadcom's former vice president of human resources would result in insufficient evidence for the Commission to withstand summary judgment motions from the defendants.
Given the Court's sua sponte dismissal of the Commission's complaint on December 15, 2009, and the Court's explanatory comments during the January 28, 2010 hearing, the Commission does not intend to proceed further in this action.