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Taking it to the Mat

October 8, 2008 | Filed Under GC Liability 

Few corporate executives under federal indictment resist the temptation (and pressure) to settle. Fewer still take the case to trial and verdict.

Former McAfee GC Kent Roberts is one who did. And he won, with acquittal on two charges related to allegations of stock-options backdating. A third charge resulted in a mistrial, and prosecutors have decided against seeking a retrial.

Mr. Roberts was represented by a team from Cooley Godward that was led by Stephen Neal. SEC charges still linger, however.

Perhaps this outcome will result in fewer cases like this being pursued, particularly where there is no clear evidence of financial gain or intent to deceive.

That would be a hopeful sign for those tasked with preparing option documentation in an age of complex compensation systems and even more complex regulatory interpretations.