Broadcom Blames Founder For Backdating

Law360, New York (January 24, 2007, 12:00 AM EST) -- One of Broadcom Corp.'s founders was partly to blame for the options backdating scandal that saw the semiconductor company reveal an extra $2.2 billion in expenses on Wednesday, the company said.

Former president and CEO Henry T. Nicholas bore “significant responsibility” for the lack of adequate controls in the options granting process, Broadcom said in its belated filing with the U.S. Securities and Exchange Commission.

The Silicon Valley company blamed the former chief’s “tone and style of business” for the failings.

Broadcom said that while none...
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