Broadcom agreed to settle the securities class action litigation currently pending against the company and certain of its current and former officers and directors for an aggregate cash payment of $150 million. Broadcom expects that approximately $40 million of that amount will be paid by its insurance carriers, with the balance of approximately $110 million to be paid by the company.
The class action was brought on behalf of persons and entities who bought or acquired shares of Broadcom’s common stock, or options on such shares, between July 31, 2000 and February 26, 2001. The proposed settlement remains subject to the satisfaction of various conditions, including negotiation and execution of a final stipulation of settlement, approval by the U.S. District Court for the Central District of California following notice to members of the class, and a commitment by the company’s insurance carriers to fund a portion of the settlement payments.
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