It is the best of times, it is the worst of times for Broadcom, legally speaking. The Irvine chipmaker has been trouncing San Diego-based Qualcomm on the patent front. But a recent San Francisco jury decision bodes ill for key figures at Broadcom and other companies targeted in federal investigations into stock-options backdating. In what was widely seen as a test run for its cases against Broadcom and other big fish, the feds recently won convictions on all 10 fraud counts against Silicon Valley exec Gregory Reyes, former CEO of Brocade Communications Systems. He faces up to 20 years. The fed probe of Broadcom centers on former CEO Henry “Nick” Nicholas,already the subject of sensational media disclosures,and former CFO Bill Ruehle. Chairman Henry Samueli, chief counsel David Dull and Broadcom itself face possible civil action …
A silver lining for Broadcom and its shareholders: The Reyes trial doesn’t appear to have impacted Brocade’s share price, which continues to track its peer group …
The Insider has learned of some behind-the-scenes maneuvering leading up to Broadcom’s big win with Bush trade rep Susan Schwab. Spurning Qualcomm, she upheld a June ruling by the U.S. International Trade Commission banning imports of new cell phone models containing Qualcomm chips that infringe on a Broadcom patent. Prior to her decision, Irvine Rep. John Campbell said he received a call from Arnold Schwarzenegger’s office informing him that the guv planned to petition Schwab on Qualcomm’s behalf. Campbell, suspecting that Qualcomm had lobbied Schwarzenegger’s people, stressed to the aide that the governor should not get involved in a legal dispute between two California companies,an argument that persuaded his friend Arnold to stay out of the matter. The call from the guv’s office to Campbell might have been a courtesy because Broadcom is a major company in the congressman’s district, but Campbell isn’t sure,he said the Schwarzenegger aide seemed surprised to hear that Broadcom, like Qualcomm, is a California company …
With the Sept. 10 premier of “Daybreak OC” approaching, Bert Ellis has been making changes. He’s moved KDOC-TV from its digs near John Wayne Airport into the former Orange County News Channel studio at the OC Register, he’s installed $5 million of new digital equipment and he’s about to announce a new GM,Dan Casey has departed after just one year …
Augie and Lynne Nieto, the inspirational OC couple that has turned Augie’s struggle with Lou Gehrig’s Disease into a multimillion-dollar crusade for a cure, return to the Jerry Lewis MDA Telethon during Labor Day weekend …
Words of wisdom from spin master Larry Thomas upon turning 60 and retiring (again) from The Irvine Company: “If 60 is the new 40, why didn’t we all retire at 40?” and, “Tan fat looks better than white fat.” He should get some sun scooting around on his new Vespa.
