Court revives backdating lawsuit against ernst dating sider dk
The Delaware Supreme Court revived a lawsuit against Zynga's controlling shareholder, Mark Pincus, and fellow board members for allegedly allowing leaders of the social gaming company to act on inside information and dump stock before it crashed in 2012.Delaware's high court ruled that the Court of Chancery erred when it dismissed the lawsuit against the board of Zynga, which created the online game Farmville, in February for procedural reasons. O'Brien, United States Attorney, for plaintiff-appellant United States of America. Following a government investigation, Ruehle was criminally indicted for his involvement in an alleged backdating scheme that ultimately resulted in Broadcom's restatement of its earnings to account for approximately .2 billion in additional stock-based compensation expenses. IIn March 2006, the Wall Street Journal published the first of a series of articles called “The Perfect Payday,” which suggested that a number of public companies were backdating stock options granted to their employees. Adkins, United States Attorney's Office, Santa Ana, CA; Thomas P. Sloan, Skadden, Arps, Slate, Meagher & Flom LLP, Los Angeles, CA, for defendant-appellee William J. We here explore the treacherous path which corporate counsel must tread under the attorney-client privilege when conducting an internal investigation to advise a publicly traded company on its financial disclosure obligations. Ruehle is the former Chief Financial Officer (“CFO”) of Broadcom Corporation, a California-based, publicly traded semiconductor supplier that came under intense scrutiny for its suspected backdating of company stock options. § 3731, and we reverse and remand for further proceedings.That case was then transferred to the multi-district litigation proceeding in California federal court where dozens of Countrywide RMBS-related cases are currently being overseen.The MDL court then subsequently granted the former Countrywide executives’ motions to dismiss for lack of personal jurisdiction in Massachusetts.Robbins Geller is a leader in the fight to protect investors from corporate securities fraud.The Firm has represented more institutional investors, pension funds and financial institutions in securities litigation than any other law firm in the United States.
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On May 18, 2006, Broadcom's Audit Committee engaged Irell, a private law firm with which it had longstanding ties, to conduct the Equity Review by investigating the propriety of the measurement dates utilized by Broadcom in its option granting process and identifying those grants which failed to meet the measurement date requirements of generally accepted accounting principles.
Ruehle, as Broadcom's CFO, was among those intimately involved in that decision from the outset.
The court found that at the initial stages of the inquiry by Irell (called the “Equity Review”) an attorney-client relationship also existed with the CFO individually, and not just with Broadcom, and that the lawyers breached their ethical duties to their client Ruehle in disclosing what he had told them in a preliminary interview. As a result of the media attention and in anticipation of an inquiry from the Securities and Exchange Commission (“SEC”), Broadcom's Board of Directors and company management decided to bring in outside counsel to commence an internal review of the company's current and past stock option granting practices.
The district court held an evidentiary hearing and, after evaluating the extensive briefing and evidence presented, issued an order suppressing all evidence reflecting Ruehle's statements to attorneys from Irell & Manella LLP (“Irell”), Broadcom's outside counsel, regarding the stock option granting practices at Broadcom. Shortly thereafter, in mid-May 2006, an investor rights group publicly identified Broadcom as one of the corporations that appeared to have engaged in backdating.