LOS ANGELES, Sept. 25, 2006 (PRIMEZONE) -- A class action lawsuit was filed in the United States District Court for the Central District of California, Western Division on behalf of purchasers (the "Class") of Broadcom Corporation's securities ("Broadcom" or the "Company") (Nasdaq:BRCM) between July 21, 2005 and July 13, 2006, inclusive (the "Class Period").
Defendants include: Broadcom, Henry Samueli, Scott A. McGregor, William J. Ruehle and Bruce E. Kiddoo. The Complaint charges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10-b(5) promulgated thereunder.
On July 14, 2006, Broadcom announced that it would record more than $750 million in added expenses and restate its past earnings related to the illegal backdating of stock options. Options pricing backdating occurs when options grants to senior officers or directors of public companies are made at prices lower than the trading price of the stock on the date such options are granted. The undisclosed backdating of options violates generally accepted accounting principles. The revelation of options backdating resulted in a precipitous decline in Broadcom's share price.
Plaintiff seeks to recover damages on behalf of the Class and is represented by the Braun Law Group, P.C. a firm with significant experience in prosecuting class actions.
If you are a member of the class described above, you may, no later than October 12, 2006, move the Court to serve as lead plaintiff, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements. If you are interested in becoming a lead plaintiff or have any questions regarding this lawsuit or your rights, please visit our firm website at www.braunlawgroup.com or contact Michael D. Braun at info@braunlawgroup.com or 310-442-7755.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.