Learn to mine court documents online and in-person
Richard Siklos of Fortune has a catchy lede on his story about former Broadcom CEO Henry Nicholas:
”As CEO-gone-bad cases go, Henry Nicholas’ had it all: heavy allegations of sex, drugs, and rock and roll, as well as big-time corporate number-fudging. Because of widespread stock-option backdating at Broadcom, the chipmaker that Nicholas used to run, the company restated its earnings to the tune of $2.2 billion. But a funny thing happened on the way to the big house: Every charge against Nicholas was recently thrown out.”
The dismissal of charges against Nicholas provides a peg for Richard to wrap up how few CEOs have been prosecuted for the backdating of options, an illegal practice that alters the dates on the grants of stock options so that executives can make more money. The link in the lede is to the 65-page indictment against Nicholas, providing the background.
Today’s Tip: Even if you’re not a legal reporter, check the dockets.
If you can’t get to the courthouse, most courts now have electronic systems that allow you to access files from your desk. PACER, for example, offers online access to U.S. Appellate, District and Bankruptcy court records This site offers a list of state court Web sites. You can do a periodic search for your company and its subsidiaries.
Sometimes good old-fashioned schmoozing will save you some time. Introduce yourself to the court clerks. Once you’ve established a relationship, ask them to call you if they get a filing against a larger employer in your area.
Also, learn who the big corporate law firms are. If your company uses out-of-town law firms, remember they still need local counsel when they go to court. In Delaware, for instance, you’ll see lots of pro hac vice (Latin meaning “for this occasion”) requests from local lawyers asking the courts to allow out-of-state lawyers to present information.
