IRVINE, Calif.-Broadcom Corp. announced a $150 million settlement to the class-action lawsuit filed by shareholders four years ago.
The company said its insurance carrier would cover $40 million, while it would pay the rest.
“We have agreed to settle this lawsuit so that we may put this long-standing matter behind us and focus Broadcom’s energies and resources on our business objectives and the many market opportunities before us,” said David Dull, the company’s senior vice president and general counsel. “We have vigorously fought these charges for over four years, and we were fully prepared to take this matter to a trial on the merits. We believe we would have prevailed at trial. But given the strength of our balance sheet and our future prospects, we concluded that this settlement provides a reasonable opportunity to avoid the continuing costs and distraction of this litigation and eliminates the chance, however slight, of a substantially greater financial exposure that is inherent in a jury trial.”
The class action was filed on behalf of investors who owned Broadcom’s shares between July 31, 2000, and Feb. 26, 2001.
