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Erik Lie Comments on Brocade Case

Prosecution of stock option backdating appears to be losing steam, especially with the ouster of the U.S. attorney responsible for the indictment of Brocade Communications Systems executives. But some parts of the case are strong - 25 percent of Brocade's options were pegged at monthly lows. The mathematical odds of such luck are miniscule, says ERIK LIE, the University of Iowa business school professor who first raised questions about backdating. "It just can't happen" without benefit of hindsight, he says.

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