Broadcom Faces SEC Probe Over IP Litigation Reserves

Law360, New York (February 24, 2012, 9:37 PM EST) -- The U.S. Securities and Exchange Commission is investigating Broadcom Corp.'s accounting practices related to reserves set aside for litigating intellectual property claims, the semiconductor company said Friday.

In a filing with the SEC, Broadcom said the investigation likely stemmed from a former employee's allegations in April 2011 regarding litigation reserves in the first quarter of 2011. The SEC has asked for documents from June 1, 2010, to the present, according to the filing.

“In response to these allegations, the company, with oversight from the audit committee...
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