Broadcom Corp. will pay $160.5 million to settle a securities fraud lawsuit which involved backdated stock options. This settlement marks the third time Broadcom has agreed to pay millions of dollars to settle options-related litigation. The settlement, which must be approved in federal court, covers class-action litigation filed on behalf of investors who bought Broadcom stock between July 21, 2005, and July 13, 2006. The suit evolved from a case brought by a New Mexico investment council that accused Broadcom and top executives of misleading investors by understating expenses.
In an April 2008 civil settlement, Broadcom paid $12 million in a Securities and Exchange Commission case that accused it of falsifying its reported income by illegally backdating options for five years. Broadcom’s insurers paid $118 million last year to settle a lawsuit accusing the company’s top officials of mismanagement and unjust enrichment through the misdating of options.
Source: Los Angeles Times
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