Former Broadcom executives were let off the hook in criminal cases this month, but the company is paying a huge price to settle a backdating-related securities class action case.
Broadcom will pay $160 million — the second largest up-front cash settlement from a company accused of backdating options. This according to the plaintiffs’ press release, as reported by the WSJ Law Blog.
Its been a big month in backdating news. Comverse agreed earlier this month to pay $225 million to settle a backdating class action suit and, as mentioned, a federal judge in California ended the criminal prosecutions of Broadcom’s founders and was highly critical of prosecutors’ tactics in pursuing the case.
Backdating was huge in the middle of the decade; it looks like the end of the decade is bring an end to a lot of outstanding claims.
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