Read The Recorder‘s roundup of the stock-option backdating scandal. There won’t be a test later … but there might be a subpoena.
A spokesman for Marvell didn’t return a message left on his cell phone late Tuesday. Asked about the company, Steven Schatz, a partner at Wilson Sonsini Goodrich & Rosati representing Marvell in the case, said, “We just don’t comment on matters for clients that are active.”
John Potter, a partner at Quinn Emanuel Urquhart Oliver & Hedges who has represented Dai and Sutardja in the SEC probe, also declined to discuss the Wells notice.
And Marc Fagel, the enforcement chief in the San Francisco SEC office, was even less loquacious when asked about the Wells notices. “I can’t even verify if I sent one,” he said.
Historically, it’s been rare for the SEC to send Wells notices to companies in large cases since they usually enter into financial settlement talks early in the process.
But in April, SEC Chairman Christopher Cox announced a new policy that requires SEC lawyers to get permission from the entire commission before discussing monetary settlements with a potential defendant. That stands in contrast to the past practice of reaching a proposed settlement and then seeking commission approval.
Under the new policy, Wells notices expressing an intent to seek financial penalties must be sent to companies prior to SEC lawyers taking the issue to the commission.
