Who knows, perhaps with the prosect of finally putting the options backdating woes in the past, the company moved quickly to get the class action case settled so that it might move on.The Broadcom class action settlement is the third largest of the options backdating-related class action settlements, after the United Health Group settlement (5.5 million) and the Comverse Technology settlement (5 million).
23 of the cases have been settled and nine have been dismissed.
My complete list of options backdating related lawsuit resolutions can be accessed here.
The dismissal of the criminal indictments doesn’t seem to have prevented a very substantial settlement of the class action, however.
Indeed, the timing of the class action settlement, coming just two short weeks after the indictments were dismissed, seems to suggest that the elimination of the criminal case somehow opened the way for the class action settlement.
LOS ANGELES (Reuters) - Broadcom Corp co-founder Henry Samueli pleaded guilty on Monday to a criminal charge of making a materially false statement to Securities and Exchange Commission investigators in a backdating case. District Judge Cormac Carney set a sentencing hearing for August 18.
Samueli, 53, entered the plea on Monday afternoon in U. District Court in Santa Ana, California, hours after the criminal case against him came to light in court filings. The plea agreement calls for Samueli to receive five years probation and pay .25 million in fines and forfeitures, but final approval of the pact with prosecutors is up to the judge.
Samueli, who served as Broadcom’s chairman and chief technical officer, admitted to falsely telling U. Securities and Exchange Commission investigators in May 2007 he was not involved with options granting practices at the Irvine, California-based chip maker, the documents showed.
In fact, internal company e-mails showed Samueli helped choose a stock options grant date with Nancy Tullos, former vice president of human resources, the documents showed.
Broadcom Corporation, which previously settled its options backdating related derivative suit for 8 million, announced on December 29, 2009 (here) that it had settled the separate options backdating related securities class action lawsuit pending against the company and certain of its directors and officers in exchange for its agreement to pay 0.5 million. Because the company provided its D&O insurers with complete releases in connection with the prior derivative settlement, Broadcom apparently is funding the class action settlement entirely out of its own resources.
Broadcom’s press release states that it will be recording the settlement amount as a one time charge in its fourth quarter 2009 financial statements.
The deal must be approved by a federal judge in Los Angeles overseeing the civil case.