Courtesy of Benzinga.
Broadcom Corporation (NASDAQ: BRCM) has been notified by the U.S. Securities and Exchange Commission’s Division of Enforcement – Los Angeles Regional office that it is conducting a formal investigation of the Company’s accounting practices related to litigation reserves. The SEC has requested documents and information for the time period commencing June 1, 2010 to present. The Company believes that the SEC’s investigation was prompted by allegations of a former employee in April 2011 relating to the Company’s processes and decisions regarding litigation reserves in the first quarter of 2011 in connection with asserted and unasserted intellectual property claims. In response to these allegations, the Company, with oversight from the Audit Committee of the Board of Directors, completed an internal review of these allegations with the assistance of independent outside counsel and did not identify any improprieties. In addition, based on the internal review, the results of which were discussed with the Company’s independent registered public accounting firm, the Company determined that no adjustments to its fiscal 2010 and March 31, 2011 consolidated financial statements were necessary relating to the subject matter of the review. The Company is cooperating with the SEC’s investigation.
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