Brocade to pay $7 mln to settle stock option fraud

WASHINGTON, May 31 (Reuters) - Brocade Communications Systems Inc. (BRCD.O: Quote, Profile, Research, Stock Buzz) has agreed to pay a $7 million penalty to settle charges for fraudulent stock option backdating, the U.S. Securities and Exchange Commission said on Thursday.

Brocade agreed to settle the charges without admitting or denying the SEC's allegations that the company's former chief executive and other former executives granted backdated stock options, misstated compensation expenses and concealed the conduct by falsifying documents.

"Brocade is being held accountable for the egregious and long-running misconduct of its former CEO and other former executives who misled investors and obscured the company's financial condition and performance," the SEC stated.