Pros Reeves- asked if restatements were a correction or something larger.
Brocade had to make the restatements per Witness.
Govt making point that cost associated with restatement cost Brocade cash and was an expense.
NOTE: If relying on process…doesn’t that infer a group of people? not a single person?
UWC Questions by Pros Reeves on cross-asking about reliance on doc and date of for grant. To compute compensation exp.
Judge Breyer is looking frustrated with the Cross of Witness Deranleau.
Pros Reeves- Exhibit 1611- Separating exhibits -showing to the witness.
iQuantic- meeting for expensing options. Mr. Reyes was not in the meeting.
Govt-is correcting the record…in a previous conversation. Exhibit 1062 -was it received into evidence? Pros. Reeves attempting to confirm. Now admitted.
Fas 123 and APB25 questions…
Intend to convey similar construct but based on different methodologies.
Different methodologies but the goal is the same.
Pros. Reeves- focusing on FAS 123 footnote.
Pros Reeves- focusing on “New Hire Stock Processing” doc….that the HR department was using a process that was inconsistent with his expectations.
Pros. Reeves focusing on Income Statement -and compensation charges. Focusing on FAS 123 breakout and the in-money options. Trying to establish that a person could know that backdating routinely making in-the money grants looks like at the money grants- Witness -No.
Judge reminds council that on re-direct cross to keep it brief.
Both sides acknowledge they will keep it on point.
We are on lunch recess now….
Seems like the strategy is to get the witnesses to admit they did wrong doing, have them cry…then try to blame Reyes…I think the jury and spectators in the court room are to smart for that.
