Investors of Broadcom Corporation, a maker of microchips headquartered in Irvine, California, sued Broadcom and many of its officials. There were several lawsuits, and all grew out of alleged manipulation of stock option grant dates. Breaches of Fiduciary Duties were alleged among the claims and causes of action in the investors' Complaints.
At least three of the lawsuits were consolidated as In re Broadcom Corporation Derivative Litigation in the United States District Court for the Central District of California under Case No. 06-3252-R (CWx). The Defendants variously claimed Insurance Coverage under or from Broadcom's many Directors and Officers Liability Insurance Policies.
The Insurance Coverage Claims of many of the Defendants, and the Claims of many of the Plaintiffs, have tentatively been settled under a Stipulation and Agreement of Partial Settlement which was filed with the Federal Securities and Exchange Commission on Friday, August 28, 2009. It awaits approval by the United States District Judge.
Under the tentative settlement, eleven (11) Directors and Officers Liability Insurance Companies are identified by name as agreeing to pay certain amounts totaling $118,000,000.00. Individual payments are apparently not disclosed at this time. The eleven named D&O Carriers are National Union; Twin City Fire; XL Specialty; Axis Re; Continental Casualty; XL Insurance (Bermuda); Arch; Starr Excess; Federal; Allied World Assurance; and Great American.
The publicly available terms of the tentative settlement, subject to judicial approval as noted, are contained in the attached Stipulation.
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