Broadcom Sued for Stock Inflation
In particular, it is alleged that the Company presented its financial results and financial statements in a manner which violated Generally Accepted Accounting Principles (``GAAP'') by, among other things, assuming a series of warrant obligations. It is further alleged that Broadcom acquired companies in exchange for its stock, and then cajoled these acquired companies into having their customers make commitments to purchase products over a period of time in exchange for warrants. These warrants should have allegedly been deducted as an expense against any warrant related sale recorded by Broadcom. However, the Company reported materially inflated revenues and income by classifying the warrant expense as goodwill that was recorded as an asset after the acquisition, in violation of GAAP, according to the Complaint filed by Pomerantz Haudek Block Grossman & Gross LLP (www.pomerantzlaw.com) on behalf of all persons or entities who purchased the common stock of Broadcom during the Class Period.
If you purchased Broadcom common stock during the Class Period, you have until May 4, 2001 to ask the Court to appoint you as one of the lead plaintiffs for the Class. In order to serve as lead plaintiff, you must meet certain legal requirements. If you wish to discuss this action or have any questions, please contact Andrew G. Tolan, Esq. of the Pomerantz firm at 888-476-6529 (or (888) 4-POMLAW), toll free, or at [email protected] by e-mail. Those who inquire by e-mail are encouraged to include their mailing address and telephone number.