The settlement provided substantial consideration to Broadcom, consisting of the receipt of cash and cancelled options from Dr. Samueli totaling million in value, plus the release of a claim by Mr.
Ruehle, which sought damages in excess of million.
Legal experts following the case said the judge’s actions were astonishing and showed he was deeply disturbed by the government’s alleged misconduct.
It is legal when properly accounted for, but if not properly disclosed, it can allow companies to overstate profits and underpay taxes.Chief Financial Officer William Ruehle, who faces conspiracy and fraud charges in an alleged scheme to backdate stock options. Last year, Broadcom agreed to pay the Securities and Exchange Commission million to settle a civil complaint related to backdating but did not admit wrongdoing.