Broadcom Investors File Lawsuit

ALL PERSONS AND ENTITIES THAT PURCHASED OR ACQUIRED THE CLASS A COMMON STOCK OF BROADCOM CORP. DURING THE PERIOD FROM JULY 21, 2005 THROUGH JULY 13, 2006, INCLUSIVE, (THE “CLASS PERIOD”), AND WERE ALLEGEDLY DAMAGED THEREBY (THE “SETTLEMENT CLASS”). YOU MAY BE ENTITLED TO A PAYMENT FROM THIS PROPOSED SETTLEMENT.

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Company Name(s): 
Broadcom
Case Name: 
Broadcom Shareholder Class Action 10/12/2006
Case Status: 
Lawsuit Filed
Case Status: 
Settlement Proposed
Case Status: 
Settlement Approved
Affected Securities
NASDAQ: BRCM
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
10/12/2006
Class Period Begin: 
07/21/2005
Class Period End: 
07/13/2006
Court of Filing: 
U.S. District Court for the Central District of California
Date Settled: 
04/30/2010
Settlement Amount: 
$160,500,000
Deadline to Participate in Settlement: 
08/13/2010
Settlement Notice: 
Settlement Proof: 
Summary: 

Broadcom is a corporation that provides semiconductors for wired and wireless communications to and throughout the home, office, and mobile environment. It is incorporated in California and its principal place of business and chief executive office is in Irvine, California. Like other public companies, Broadcom awarded stock options to its employees, executives and directors.

On October 12, 2006, Lead Plaintiff for the proposed class was appointed by the Court.

The operative complaint in the Litigation is the Consolidated Amended Class Action Complaint (the “Amended Complaint”). The Amended Complaint alleges, among other things, that the Settling Defendants violated Section 10(b) of the Securities Exchange Act of 1934 (“Exchange Act”) and Rules 10b-5(a)-(c) by engaging in a fraudulent scheme to inflate Broadcom’s stock price by backdating stock option grants and issuing allegedly false and misleading statements to
investors during the Class Period. The statements allegedly contained misrepresentations and omissions regarding the Company’s stock option grants between April 1998 and May 2003. The Amended Complaint also alleges that the Individual Defendants were “control persons” and were liable under Section 20(a) of the Exchange Act. The Amended Complaint further alleges that Lead Plaintiff and other Class Members purchased Broadcom Class A common stock during the Class Period at artificially inflated prices and were allegedly damaged when the truth about Broadcom’s stock option practices was disclosed and the stock price dropped. The Litigation seeks money damages against the Settling Defendants for violations of these federal securities laws.

The Settling Parties have been litigating the case since Lead Plaintiff was appointed in October 2006.