Broadcom insurers agree to pay $118 million to settle lawsuit

The
deal would settle a case accusing company executives of mismanagement
and misdating stock options. The money would be paid to Broadcom, which
agreed to pay $11.5 million to plaintiffs' attorneys.

Insurers have agreed to pay $118 million to settle a federal lawsuit
accusing Broadcom Corp. officials of mismanagement and unjust
enrichment through the misdating of stock options.

The settlement doesn't cover co-founders Henry Samueli and Henry T. Nicholas III.

Broadcom
disclosed the agreement with its providers of insurance covering
corporate officers and directors in a Securities and Exchange
Commission filing Friday.

The accord would settle a lawsuit
brought by investors on behalf of the Irvine microchip firm, whose
$2.2-billion restatement of its financial results in January 2007 was
the largest by a U.S. company in a wave of option-misdating scandals.

The money from the insurers would be paid to Broadcom, which agreed to pay $11.5 million to plaintiffs' attorneys in the case.

The
agreement covers claims against 10 current and former Broadcom officers
and directors named as defendants in the federal lawsuit, along with
several others named in a state court action.

The defendants
admitted no liability. Broadcom, which has spent more than $100 million
on legal fees related to the options, said it wanted to avoid
additional costs.

The settlement does not cover potential liabilities in the case

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