Brocade Communications Systems has reached an agreement to pay $160 million to settle a class-action lawsuit involving stock options backdating.
The suit relates to Brocade's restatement of financial results in 2005 after disclosures of backdating emerged. The company widened its 2004 loss to $32 million from $2 million because of the misreporting of stock-based compensation, and later added another $71 million in expenses because of improper accounting for stock options. The suit was originally filed in the U.S. District Court for the Northern District of California against the technology company and some of its former directors and officers.
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