Broadcom backdating settlement Webcam materbation chat rooms

Backdating involves retroactively setting a stock option's exercise price to a low point in the stock's value, boosting profits when the shares are sold.

broadcom backdating settlement-38

Nicholas III, and the former chief financial officer, William Ruehle, among others of determining option grant dates retroactively from 1998 to 2003.In 2001, for example, they awarded options in November for an October date when shares traded at a yearly low, the complaint said.Former Broadcom Chief Financial Officer Bill Ruehle and co-founder Henry Samueli were named as defendants, as well as former general counsel David Dull and several other former and current executives and directors.Broadcom said in its statement that it "steadfastly maintained" the claims weren't true, but added that settling the civil case will allow the chipmaker to move forward. Carney also dismissed an SEC civil action against Nicholas, Samueli, Ruehle and another former executive.Susan Beck writes an insightful piece on the Broadcome settlement and how the attorneys for both sides are likely to end up the only winners in this derivative suit alleging backdating which settled for 8M: We're still scratching our heads over this one.

Last week, Broadcom announced in an 8K filing

Judge Carney also dismissed the options backdating-related SEC enforcement action as well, though the SEC action dismissal was without prejudice.

Judge Carney did also "discourage" the SEC from refilng its complaint.

The 8 million that Broadcom will receive--which is coming from its D&O insurers under a settlement--will be eaten up by the .5 million fee for the plaintiffs' lawyers and this 0 million-plus defense tab.

Broadcom is obligated to pay these defense fees under the indemnification agreements it signed with these officers and directors.

The Irvine-based chipmaker said in a statement that it would take the settlement, which still needs a judge's approval, as a one-time charge in the fourth quarter.