Tuesday, December 29, 2009
Labaton Sucharow LLP Secures $160.5 Million Options Backdating Settlement Against Broadcom Corp.
NEW YORK (December 29, 2009)--Attorney General Gary King today announces that Broadcom Corp. has agreed to a $160.5 million cash settlement of the class action lawsuit arising from Broadcom's alleged stock option backdating practices. The NM State Investment Council (SIC), represented by the Attorney General's Office, was the lead plaintiff in the lawsuit.
"This cash recovery is the second largest up-front settlement ever from a company accused of stock options backdating and represents a substantial percentage of damages incurred by the Class," says Attorney General King. "This result is great news for the State of New Mexico and the thousands who were affected."
AG King adds, "We will continue to aggressively prosecute our claims against Broadcom's independent auditor, Ernst & Young LLP, who we allege were culpable under securities laws. These claims are currently on appeal before the U.S. Court of Appeals for the Ninth Circuit."
Broadcom's historical stock option practices were called into question by securities analysts and others in May 2006. The state alleged that, between July 21, 2005 and July 13, 2006, Broadcom violated federal securities laws by disseminating a series of materially false and misleading statements relating to Broadcom's stock option practices.
The state was also represented by the law firm of Labaton Sucharow LLP.
More information about Labaton Sucharow is available at www.labaton.com.