Sonsini Not Named in New Civil Suit

Brocade Communications Systems has filed a civil lawsuit for backdating that will not include Wilson Sonsini Goodrich & Rosati. Partner Larry Sonsini and any member of the firm are not expected to be named as defendants, according to the ABA Journal citing a story first reported by The Daily Journal.

 

Sonsini served on the board and Wilson Sonsini was outside counsel during the time that Brocade granted backdated stock options. Both have been named in a derivative lawsuit filed by San Diego plaintiffs firm Johnson Bottini.

Former Brocade CEO Gregory Reyes and Stephanie Jensen, former human resources chief, were convicted of backdating crimes last year.

 

Brocade's special litigation committee has been weighing whether to sue former Brocade executives, directors, and advisers to recover some of the losses sustained by the company in the backdating scandal.

 

The committee, headed by Dewey & LeBeouf's Ralph Ferrara, announced in early June that it planned to target 11 people but wouldn't name them.

 

The Daily Journal, quoting sources familiar with the case, reported yesterday that it's not likely that Sonsini or his firm will be sued by the committee.