The SEC filed a complaint against Blue Coat Systems, Inc., stating: "From at least 2000 through 2005, Blue Coat Systems, Inc. ("Blue Coat" or the "Company"), a Sunnyvale network security company, illegally backdated stock options granted to Blue Coat employees and executives, concealing tens of millions of dollars in expenses from the Company's shareholders."

The SEC stated that: "[It] charged Sunnyvale, California, network security company Blue Coat Systems, Inc. and its former chief financial officer Robert P. Verheecke, alleging that they backdated stock option grants to executives and employees and reported false financial information to shareholders."

The Court stated that the SEC and Defendant Blue Coat Systems, Inc. "consented to the Court's jurisdiction over Defendant and the subject matter of this action; consented to entry of this final judgment without admitting or denying allegations of the complaint (except as to jurisdiction); waived findings of fact and conclusions of law; and waived any right to appeal from this final judgment".