Goodkind Labaton Rudoff & Sucharow LLP Announces Class Action Against Broadcom Corporation

Apr 19, 2001, 01:00 ET from Goodkind Labaton Rudoff & Sucharow LLP

    NEW YORK, April 19 /PRNewswire/ -- Goodkind Labaton Rudoff & Sucharow LLP
 announced today that a class action complaint (the "Complaint") has been
 commenced in the United States District Court for the Central District of
 California against Broadcom Corporation ("Broadcom" or the "Company") (Nasdaq:
 BRCM), and certain of its officers and directors, Henry T. Nicholas III,
 William J. Ruehle and Henry Samueli on behalf of Joseph Falzone as a
 representative of all persons who purchased Broadcom common stock between July
 31, 2000 through February 27, 2001 (the "Class Period").
     Those wishing to serve as lead plaintiff must move the Court no later than
 60 days from March 5, 2001.  Any such motion for lead plaintiff need not be
 made through Goodkind Labaton Rudoff & Sucharow LLP, but may be made through
 counsel of your choice.  If you wish to discuss this action or have any
 questions concerning this notice or your rights, feel free to contact
 plaintiff's counsel, Jonathan Plasse or Chris Romanelli at 212-907-0700 or by
 email at plassej@glrs.com , or romanec@glrs.com .
     The Complaint charges Broadcom and certain of its officers and directors
 with violations of Section 10(b) the Securities Exchange Act of 1934 and the
 Securities and Exchange Commission rules promulgated thereunder.  Broadcom
 provides integrated silicon solutions that enable the broadband digital
 transmission of voice, video and data to homes and businesses.  The Complaint
 alleges that during the Class Period, defendants touted Broadcom as, "the
 fastest growing U.S. semiconductor company to date," and reported revenue
 growth of 129% and 132% for the third and fourth quarter of fiscal 2000, as
 well as revenue growth of 30% and 18%.
     The Complaint alleges that these representations were materially false and
 misleading because the defendants had grossly overstated Broadcom's true
 revenues, growth rates and financial performance by failing to disclose that
 Broadcom had obtained part of its revenues by giving customers millions of
 dollars worth of warrants for Broadcom stock in return for their orders.
     Specifically, the Complaint alleges that beginning in or around July,
 2000, Broadcom bought five companies:  Allayer Communications, Altima
 Communications Inc., Silicon Spice Inc., Sibyte Inc. and VisionTech, Ltd.
 During negotiations for the acquisitions, Broadcom had these companies go to
 their customers and obtain agreements for product orders in return for
 warrants for the stock in the companies.  Then, Broadcom converted these
 warrants to warrants for its own stock as part of the acquisitions.
     Contrary to its representations, Broadcom's financial statements were not
 prepared in accordance with Generally Accepted Accounting Principles ("GAAP").
 Under GAAP, Broadcom was required to reduce revenues from these product orders
 by the value of the warrants.  Instead, Broadcom capitalized the value of the
 warrants, treating them as goodwill, or balance sheet assets, not liabilities.
 It then amortized this goodwill over a five-year period, regardless of the
 amount and timing of the associated revenues from customers.  As a result, the
 Company's financial statements were materially false and misleading.
     On February 27, 2001, The Wall Street Journal published an article
 questioning Broadcom's accounting treatment for its revenue and warrant
 arrangements.  In the wake of the adverse facts disclosed in that article, the
 Company's stock price fell nearly 15%, from $63 per share the day before to
 $53.62 per share that day, on unusually heavy volume.  The Complaint also
 alleges that certain Broadcom officers and directors profited from the
 inflated stock prices, selling more than $80 million of Broadcom stock during
 the Class Period.
     Plaintiff seeks to recover damages on behalf of all purchasers of Broadcom
 common stock during the Class Period.  The plaintiff is represented by
 Goodkind Labaton Rudoff & Sucharow LLP.  Goodkind Labaton Rudoff & Sucharow
 LLP is a 46-lawyer firm that was formed nearly 40 years ago and is situated in
 New York City with a branch office in Fort Lauderdale.  Goodkind Labaton
 Rudoff & Sucharow LLP has extensive experience in prosecuting investor class
 actions.  For more information about Goodkind Labaton Rudoff & Sucharow LLP
 visit the firm's website at http://www.glrs.com .
 
 

SOURCE Goodkind Labaton Rudoff & Sucharow LLP
    NEW YORK, April 19 /PRNewswire/ -- Goodkind Labaton Rudoff & Sucharow LLP
 announced today that a class action complaint (the "Complaint") has been
 commenced in the United States District Court for the Central District of
 California against Broadcom Corporation ("Broadcom" or the "Company") (Nasdaq:
 BRCM), and certain of its officers and directors, Henry T. Nicholas III,
 William J. Ruehle and Henry Samueli on behalf of Joseph Falzone as a
 representative of all persons who purchased Broadcom common stock between July
 31, 2000 through February 27, 2001 (the "Class Period").
     Those wishing to serve as lead plaintiff must move the Court no later than
 60 days from March 5, 2001.  Any such motion for lead plaintiff need not be
 made through Goodkind Labaton Rudoff & Sucharow LLP, but may be made through
 counsel of your choice.  If you wish to discuss this action or have any
 questions concerning this notice or your rights, feel free to contact
 plaintiff's counsel, Jonathan Plasse or Chris Romanelli at 212-907-0700 or by
 email at plassej@glrs.com , or romanec@glrs.com .
     The Complaint charges Broadcom and certain of its officers and directors
 with violations of Section 10(b) the Securities Exchange Act of 1934 and the
 Securities and Exchange Commission rules promulgated thereunder.  Broadcom
 provides integrated silicon solutions that enable the broadband digital
 transmission of voice, video and data to homes and businesses.  The Complaint
 alleges that during the Class Period, defendants touted Broadcom as, "the
 fastest growing U.S. semiconductor company to date," and reported revenue
 growth of 129% and 132% for the third and fourth quarter of fiscal 2000, as
 well as revenue growth of 30% and 18%.
     The Complaint alleges that these representations were materially false and
 misleading because the defendants had grossly overstated Broadcom's true
 revenues, growth rates and financial performance by failing to disclose that
 Broadcom had obtained part of its revenues by giving customers millions of
 dollars worth of warrants for Broadcom stock in return for their orders.
     Specifically, the Complaint alleges that beginning in or around July,
 2000, Broadcom bought five companies:  Allayer Communications, Altima
 Communications Inc., Silicon Spice Inc., Sibyte Inc. and VisionTech, Ltd.
 During negotiations for the acquisitions, Broadcom had these companies go to
 their customers and obtain agreements for product orders in return for
 warrants for the stock in the companies.  Then, Broadcom converted these
 warrants to warrants for its own stock as part of the acquisitions.
     Contrary to its representations, Broadcom's financial statements were not
 prepared in accordance with Generally Accepted Accounting Principles ("GAAP").
 Under GAAP, Broadcom was required to reduce revenues from these product orders
 by the value of the warrants.  Instead, Broadcom capitalized the value of the
 warrants, treating them as goodwill, or balance sheet assets, not liabilities.
 It then amortized this goodwill over a five-year period, regardless of the
 amount and timing of the associated revenues from customers.  As a result, the
 Company's financial statements were materially false and misleading.
     On February 27, 2001, The Wall Street Journal published an article
 questioning Broadcom's accounting treatment for its revenue and warrant
 arrangements.  In the wake of the adverse facts disclosed in that article, the
 Company's stock price fell nearly 15%, from $63 per share the day before to
 $53.62 per share that day, on unusually heavy volume.  The Complaint also
 alleges that certain Broadcom officers and directors profited from the
 inflated stock prices, selling more than $80 million of Broadcom stock during
 the Class Period.
     Plaintiff seeks to recover damages on behalf of all purchasers of Broadcom
 common stock during the Class Period.  The plaintiff is represented by
 Goodkind Labaton Rudoff & Sucharow LLP.  Goodkind Labaton Rudoff & Sucharow
 LLP is a 46-lawyer firm that was formed nearly 40 years ago and is situated in
 New York City with a branch office in Fort Lauderdale.  Goodkind Labaton
 Rudoff & Sucharow LLP has extensive experience in prosecuting investor class
 actions.  For more information about Goodkind Labaton Rudoff & Sucharow LLP
 visit the firm's website at http://www.glrs.com .
 
 SOURCE  Goodkind Labaton Rudoff & Sucharow LLP