Broadcom Will Pay $160.5M to Settle Suits

     (CN) – Broadcom Corp. will pay $160.5 million to settle class-action lawsuits from shareholders who complained of illegal backdating of stock option grants. Broadcom didn’t admit any wrongdoing as part of the settlement.

     Tuesday’s settlement covers class-action lawsuits filed by investors between July 2005 and July 2006.
     The agreement comes after a judge earlier this month dismissed criminal securities fraud charges against the company’s co-founder Henry T. Nicholas III, former CEO William J. Ruehle. U.S. District Judge Cormac Carney also threw out co-founder Henry Samueli’s guilty plea to a charge of lying about the backdating practice, The Associated Press reported.
     Details of how the money would be distributed wasn’t immediately known.
     Broadcom was accused of backdating stock option grants to its employees without telling them that they were backdated.

%d bloggers like this: