Broadcom and backdating
Continue Reading Although some noteworthy settlements from the subprime-related securities class action litigation wave have started to accumulate (refer for example here), there are still some impressive settlements coming in from the prior scandal.In the third largest options backdating-related securities class action lawsuit settlement, Maxim Integrated Products has agreed to settle the claims against all …(AP Photo/The Orange County Register, Mindy Schauer) ** NO SALES, MAGS OUT, LA TIMES OUT ** less FILE - In this June 5, 2008 file photo, Broadcom's former chief financial officer, William J.Ruehle, left, and his attorney Richard Marmaro leave the Ronald Reagan Federal Courthouse in Santa Ana, Calif. more A federal judge has dismissed fraud and conspiracy charges in the stock-option backdating case against Broadcom Corp. District Judge Cormac Carney also asked prosecutors to explain why a separate drug indictment against Nicholas should not also be thrown out, and he dismissed a civil case the Securities and Exchange Commission filed against four Broadcom executives.
Under the deal, Cypress acquires Broadcom's Io T products and intellectual property for Wi-Fi, Bluetooth and Zig Bee connectivity, as well as Broadcom's WICED platform and SDK for developers.
Broadcom is among Gartner's Top 10 Semiconductor Vendors by revenue. In 2012, Broadcom's total revenue was .01 billion. 327 on the Fortune 500, having climbed 17 places from its 2012 ranking of No. Broadcom shareholders will hold 32% of the new Singapore-based company to be called Broadcom Limited.
Hock Tan, Avago President and CEO, will be the new CEO of the new combined company. Samueli will be Chief Technology Officer and member of the combined company's board. Nicholas will serve in a strategic advisory role within the new company.
At its peak, the government put approximately 123 companies under investigation for alleged accounting violations in the backdating and pricing of stock options given as compensation to company executives.
The investigations cost companies hundreds of thousands of dollars to defend, and resulted in the firing of several high-level executives.