reached an agreement in principle to settle the securities class action litigation currently pending against the company and some of its current and former officers and directors.
The lawsuit was brought on behalf of anyone who bought Broadcom's common stock or options between July 31, 2000, and Feb. 26, 2001.
The proposed settlement remains subject to the negotiation and execution of a final stipulation of settlement, approval by the U.S. District Court for the Central District of California and a commitment by the company's insurance carriers to fund a portion of the settlement payments.
Under the proposed settlement, the litigation will be dismissed in exchange for a cash payment of $150 million. Broadcom expects that about $40 million of that amount will be paid by its insurance carriers, with the remaining $110 million to be paid by the company.
The communications semiconductor maker expects to record its estimated portion of the settlement payment as a charge in the second quarter and to pay that amount in cash into escrow in the third quarter.
Shares of Broadcom were up 10 cents to $37.37 in premarket trading.