Lawyers for Brocade Ex-CEO Enter Motion for New Trial

December 11, 2007 ( - The only Brocade Communications finance employee called to testify against former CEO Gregory Reyes has recanted her testimony, leading defense attorneys to file a motion for a new trial.

The Recorder reports that during Reyes’ trial, Elizabeth Moore told jurors that people in her department did not know about backdating at the company, because they had been deceived by Reyes and HR vice president Stephanie Jensen. Since then Moore has told several people that her testimony was inaccurate and she and several of her colleagues knew about backdating at Brocade, and none of them believed there was anything wrong with it, the motion said, according to The Recorder.

The individuals to whom Moore has allegedly spoken since the trial have filed declarations on behalf of Reyes’ motion.

In preparing for the Jensen trial, the government tried to interview Moore, but instead of talking, Moore met with her original lawyers who subsequently withdrew from representing Moore, the news report said. Her new attorney indicated she would assert her Fifth Amendment rights in any interview for the Jensen case.

“The only reasonable inference from Ms. Moore’s retention of new counsel and her invocation of her Fifth Amendment rights is the one consistent with her statements to [a witness]: that her testimony at the Jensen trial would have been materially different from her testimony at the Reyes trial,” the motion said, according to The Recorder.

Reyes was convicted in August on 10 felony counts relating to the backdating of stock options (See Former Brocade CEO Gets 10 Guilty Verdicts for Backdating Charges ).

Earlier this month Jensen was found guilty of conspiracy and falsifying corporate records (See Options Charges Claim Second Brocade Defendant ).