Frequently Asked Questions
- What is this case about?
- Why did I receive the Notice?
- I received a Notice Packet. Can you please provide me with a list of my transaction history with Broadcom?
- How do I know if I am an eligible claimant?
- What is the amount of the Settlement Fund?
- How much money will I receive if I file a Proof of Claim form?
- How will my claim be calculated?
- When will I receive my payment?
- Who is the Claims Administrator?
- Where can I obtain additional information about the Litigation?
- If I have further questions, can I submit my questions via telephone or email?
A. Broadcom Corporation ("Broadcom") is a corporation that provides semiconductors for wired and wireless communications to and throughout the home, office, and mobile environment. It is incorporated in California and its principal place of business and chief executive office is in Irvine, California. Like other public companies, Broadcom awarded stock options to its employees, executives and directors.
On October 12, 2006, New Mexico State Investment Council was appointed Lead Plaintiff for the proposed class by the Court. The defendants in the Litigation are: Broadcom; Henry Samueli, William J. Ruehle, David A. Dull, Alan E. Ross, Werner F. Wolfen (collectively, the "Individual Defendants," and, with Broadcom, the "Settling Defendants") and Ernst & Young. (collectively, with the Settling Defendants, the "Defendants"). All claims against Ernst & Young have been dismissed and the dismissal is being appealed.
The operative complaint in the Litigation is the Consolidated Amended Class Action Complaint (the "Amended Complaint"). The Amended Complaint alleges, among other things, that the Settling Defendants violated Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Rules 10b-5(a)-(c) by engaging in a fraudulent scheme to inflate Broadcom's stock price by backdating stock option grants and issuing allegedly false and misleading statements to investors during the Class Period. The statements allegedly contained misrepresentations and omissions regarding the Company's stock option grants between April 1998 and May 2003. The Amended Complaint also alleges that the Individual Defendants were "control persons" and were liable under Section 20(a) of the Exchange Act. The Amended Complaint further alleges that Lead Plaintiff and other Class Members purchased Broadcom Class A common stock during the Class Period at artificially inflated prices and were allegedly damaged when the truth about Broadcom's stock option practices was disclosed and the stock price dropped. The Litigation seeks money damages against the Settling Defendants for violations of these federal securities laws.
A. We have mailed copies of the Notice of Pendency and Proposed Settlement with Broadcom Defendants (the "Settlement Notice") and a Proof of Claim form to all people who were identified to us by Broadcom's transfer agent and by banks, brokerage firms and other nominees as possibly having invested in Broadcom Class A common stock during the period from July 21, 2005 through July 13, 2006, inclusive (the "Class Period"). The Settlement Notice is to notify you that you may be a Class Member and of a proposed settlement that has been reached with Broadcom Defendants. The Settlement Notice describes Class Members' rights. If you are a Class Member you may be able to receive payment from the Settlement Fund.
A. We do not have your transaction history for Broadcom Class A common stock. We have only been notified by a bank, brokerage firm, other financial institution, or the transfer agent for Broadcom Class A common stock, that you may be a Class Member. We do not have any of your financial records.
If for some reason you do not have your financial records, please contact your bank, broker or financial institution for records documenting your investments in Broadcom Class A common stock.
Acceptable forms of supporting documentation include:
- Broker confirmation slips that list the security name, the name and address of the purchaser or seller, type of transaction (purchase or sale), the date of the transaction, the number of shares or other securities, the price per share or security and the total amount of the transaction, AND/OR
- Periodic (monthly or quarterly) account statements that detail all activity within a specific period.
A. If you purchased or otherwise acquired Class A common stock of Broadcom during the period from July 21, 2005 through July 13, 2006, inclusive, and were allegedly damaged thereby, you are a potentially eligible claimant.
A. The Settling Parties have established a Settlement Fund consisting of $160,500,000 in cash, plus any interest earned on that amount after it is deposited (the "Settlement Fund"). The Net Settlement Fund to be distributed to Class Members who submit acceptable Proofs of Claim will be reduced by costs, expenses and taxes.
A. The amount of money that eligible claimants will receive depends on a number of factors, including: (1) the number of claims submitted; (2) when a Class Member purchased Broadcom Class A common stock; (3) whether the Class Member continued to hold Broadcom Class A common stock at the end of the Class Period; and (4) if the Class Member sold Broadcom Class A common stock, when it was sold and the price received. Accordingly, it is not possible to know eligible claimants' recovery amounts at this time.
The Settlement Notice includes on pages 10-12 the proposed "Plan of Allocation" which provides formulae explaining how each claimant's recognized claim will be calculated. Claimants will not likely receive the full amount of their recognized claims. After all of the recognized claims of all eligible Class Members are calculated, the Authorized Claimants will share in a pro rata distribution of the Net Settlement Fund.
A. The Settlement Notice, on pages 10-12, provides the formulae for calculating any Class Member's Recognized Loss. The Net Settlement Fund will be allocated in proportion to each Authorized Claimant's Recognized Loss. To download a copy of the Settlement Notice, please click here.
A. Initial Distribution took place on April 19, 2011.
The Garden City Group, Inc.
A. You may obtain additional information on this settlement website: (www.broadcomclassactionsettlement.com) or by calling the toll-free hotline at (866) 975-4790. Please do not contact the Court.
A. If you have questions which are not answered by this website, please contact us at the telephone number 1 (866) 975-4790. This hotline contains various information about the settlement. You can also reach us online at firstname.lastname@example.org .