When formatting the following snippet, it inserts a newline and optionally a, asterisk inside the first code tag:

Before:
    /**
     * Does the same as:
     * <p/>
     * <code> clear();<br/>
     * removeAllSelections();<br/>
     * setDefaults();</code>
     */
    public static void reset() {
        clear();
        removeAllSelections();
        setDefaults();
    }

After:
    /**
     * Does the same as:
     * <p/>
     * <
     * code> clear();<br/>
     * removeAllSelections();<br/>
     * setDefaults();</code>
     */
    public static void reset() {
        clear();
        removeAllSelections();
        setDefaults();
    }

How this Javadoc appears in the Javadoc panel:

public static void reset()

Does the same as:

code> clear();
removeAllSelections();
setDefaults();

I have Options->Editor->Formatting->Java->Comments turned on, and I tried turning all sub-options off. Nothing prevents the newline from being added short of turning comment formatting off altogether.