Backdating Derivative Suit Names Wilson Sonsini
A derivative suit that targets Brocade Communications for backdating includes the company’s law firm as a defendant.
The suit claims Wilson Sonsini Goodrich & Rosati committed legal malpractice by giving its approval to backdated stock options, the Recorder reports. The suit also claims the law firm gave bad advice on a settlement proposal in another derivative case.
Brocade’s CEO, Gregory Reyes, has been sentenced to 21 months in prison for backdating stock options.
The law firm that filed the derivative suit is Johnson Bottini of San Diego. Francis Bottini Jr., the lead lawyer in the case, said he thinks law firms representing securities plaintiffs are reluctant to pursue other firms for fear of retaliation in future cases.
“Are they going to try to retaliate against us? I don’t know,” Bottini told the Recorder. “But Frank Bottini is probably not going to be their favorite person over at Wilson.”
