Legal News

Broadcom Agrees To Pay $160 Million To Settle Securities Suit

By Nathan Koppel

This just in: Broadcom Corp has agreed to pay $160 million in cash to settle a securities fraud class action stemming from alleged backdating at the company.

The New Mexico State Investment Council was the lead plaintiff in the suit, which was pending in federal court in Los Angeles. Labaton Sucharow was lead counsel.

In a press release, the plaintiffs hailed this as the second largest up-front cash settlement from a company accused of options backdating.

“This result is great news for the State of New Mexico and the thousands who were affected,” New Mexico Attorney General Gary King said in a press release.

We reached out to Broadcom but have not heard back.

The big-time payment in this case stands in stark contrast to the criminal prosecution of Broadcom executives, which is in tatters. Earlier this month, as we noted here and here, Orange County, Calif. federal judge Cormac Carney dismissed backdating-related criminal charges against Broadcom co-founders Henry Nicholas (pictured) and Henry Samueli.

End of post.

Full post as published by Law Blog - WSJ.com on December 29, 2009 (boomark / email).