An appellate court ruled that ClearOne Communications Inc.'s agreement to pay attorneys fees for its former CEO came with conditions, including that she not break the law.
The 10th U.S. Circuit Court of Appeals in Denver overturned a Utah judge's preliminary injunction that required Salt Lake City-based ClearOne to pay attorneys fees for Frances Flood. A jury last year convicted Flood of falsifying company revenue. She was sentenced in June to four years in prison.
The issue will go back to a federal judge in Utah.
Prosecutors say Flood told executives to ship millions of dollars of video and audio conferencing equipment to distributors without payment, then booked it as sales.
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The court's opinion issued Monday was first reported by The National Law Journal.