Broadcom backdating stock options
SANTA ANA – Federal officials charged semiconductor-maker Broadcom today with falsifying its reported income by illegally backdating stock options for five years.The Irvine-based company agreed to pay million to settle the charges without admitting or denying the allegations, the U. Securities and Exchange Commission said in a statement. Nicholas III and Henry Samueli did not immediately return calls.A Broadcom spokesman did not immediately return an e-mail seeking comment.
“The backdating scheme at Broadcom went on for five years, involved dozens of option grants,” Linda Chatman Thomsen, director of the SEC’s enforcement division, said in a statement. attorney’s office has also launched a probe into stock-option backdating at Broadcom.
The charges relate to the company's actual earnings under Generally Accepted Accounting Principles, or GAAP.
The charges do not affect revenue, cash, cash equivalents or marketable securities balances, the company said.
The company also agreed to pay up to .5 million in the plaintiffs' legal fees and expenses. In April 2008, the Securities and Exchange Commission had also announced that Broadcom agreed to pay a million penalty in connection with options backdating charges.
Stock options give employees the right to buy shares in the future at the market price on the date a grant is approved.