All’s well(s) at Broadcom?
The 10-Q that Broadcom (BRCM) filed late yesterday shows that the company continues to deal with multiple investigations related to stock option back-dating as well as the Qualcomm (QCOM) saga. And, while the company disclosed in the Q that it’s legal expenses actually fell during the quarter (though I’m not exactly sure how), all of this time with attorneys has got to be, at best, a serious distraction.
Among the new things in yesterday’s Q is that the company’s indemnification of executives and directors extends to the ongoing SEC investigations (in July the company and its Chairman and Chief Technology Officer, Dr. Henry Samueli received Wells notices from the SEC; in August, a similar notice was sent to General Counsel David Dull) and the U.S. Attorney’s investigations. Also new was that the company said it had met with the SEC staff “in an effort to explore possible resolution, and is awaiting further communication”
There was also a slight tweak in the language regarding the company’s ongoing Special Litigation Committee, which was formed in May 2007 and which is continuing to do its work regarding the options derivative actions. Instead of vigorously defending each of the lawsuits, the company says it will vigorously oppose them.
And then there’s the Qualcomm mess which stretches from Southern California to Europe and takes up a significant chunk of real estate in the filing. Given all this, it really is a miracle that the company’s legal expenses declined by over $9 million.