Monday, June 27, 2005
Broadcom Settles Shareholder Lawsuit
Irvine-based Broadcom has settled a class action shareholder lawsuit. The company has agreed to pay $150M in cash to holders of its stock or options between July 31, 2000 and Feb. 26, 2001. The lawsuit had been filed by shareholders who claimed the company had engaged in securities fraud related to warrants given to customers of certain products. Broadcom said that its insurers would pay $40M of the settlement, and that the company will take a charge against its earnings in Q2 of 2005.