In re Broadcom Corp. Securities Litigation - Ernst & Young Settlement
We reached a $13 million settlement with Ernst & Young LLP, Broadcom's independent auditor, in a case involving one of the largest restatements in history due to stock options backdating.
On December 5, 2012, the Honorable Manuel L. Real of the United States District Court for the Central District of California entered final approval to the $13 million cash settlement with Ernst & Young LLP ("Ernst & Young") ("EY Settlement") in the certified class action, In re Broadcom Corporation Class Action Litigation, No. CV-06 -5036-R (CWx). The EY Settlement is in addition to the $160.5 million settlement with Broadcom Corporation, approved by final judgment entered on August 12, 2010 ("Broadcom Settlement").The EY Settlement resolves all claims in the action.
Labaton Sucharow LLP is the court-appointed class counsel for Class Representative and the Class.
Class Representative, on behalf of the Class, alleged that, among other things, certain of Broadcom's senior officers and directors participated in a fraudulent scheme to inflate Broadcom's stock price by intentionally backdating most of Broadcom's stock option grants between April 1998 and May 2003.Ernst and Young, Broadcom's independent auditor from 1998 until 2008, allegedly knew or recklessly disregarded, that Broadcom's publicly reported financial statements were false and misleading during this time, and signed an unqualified audit opinion in violation of Section 10(b) of the Securities and Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
If you purchased or otherwise acquired the Class A common stock of Broadcom Corporation during the period from February 14, 2006 through May 25, 2006, inclusive (the "Class Period"), and were allegedly damaged thereby, you may be entitled to a payment from the proposed EY Settlement.To be eligible for a payment from the EY Settlement, you must either (1) have already submitted a claim in connection with the prior Broadcom Settlement; or (2) if you did not already submit a claim in connection with the Broadcom Settlement, you must submit a validly completed Proof of Claim with supporting documents by December 26, 2012.
A settlement hearing was held on December 3, 2012, at 10:00 a.m. before Judge Real in Courtroom 8 of the Spring Street Courthouse, the United States District Court for the Central District of California (Western Division), 312 N. Spring Street, Los Angeles, CA 90012.The deadline for objecting to the EY Settlement or for seeking exclusion from the Class has passed.
Copies of the relevant settlement documents can be accessed by clicking on the links to the right.