Spector, Roseman & Kodroff, P.C. Files Class Action Suit Against Broadcom Corp. Alleging Securities Fraud - BRCM

Philadelphia, Pennsylvania, UNITED STATES


PHILADELPHIA, March 12, 2001 (PRIMEZONE) -- The law firm of Spector, Roseman & Kodroff, P.C. announces that a class action lawsuit has been commenced in the United States District Court for the Central District of California against defendant Broadcom Corp. ("Broadcom" or the "Company") on behalf of purchasers of the stock who purchased Broadcom Corp. (Nasdaq:BRCM) securities during the period from October 18, 2000 through February 26, 2001 (the "Class Period").

The complaint charges Broadcom and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Broadcom is a provider of highly integrated silicon solutions that enable broadband digital transmission of voice, video and data to and throughout the home and within the business enterprise. The complaint alleges that during the Class Period, defendants made positive but false statements about Broadcom's results and business, while concealing information about agreements with certain companies it acquired, which essentially resulted in Broadcom buying its own revenues. As a result, Broadcom's stock traded at artificially inflated levels, permitting the three individual defendants to sell $45.8 million worth of their Broadcom stock.

Then, on February 27, 2001, The Wall Street Journal published an article on Broadcom entitled "Warrant Deals Raise Concerns on Broadcom," in which analysts and accounting experts questioned the "legitimacy" of the transactions and termed the agreements "troubling." Broadcom's stock immediately dropped, falling 16% to $53, before closing at $53.625 on February 27, 2001, and falling to $49.25 on February 28, 2001. The Plaintiffs seek to recover damages on behalf of all purchasers of Broadcom common stock during the Class Period.

If you purchased Broadcom Corp. securities during the Class Period, you may, no later than May 4, 2001, move to be appointed as a Lead Plaintiff in this class action. A Lead Plaintiff is a representative, chosen by the Court, that acts on behalf of other class members in directing the litigation. The Private Securities Litigation Reform Act of 1995 directs Courts to assume that the class member(s) with the "largest financial interest" in the outcome of the case will best serve the class in this capacity. Courts have discretion in determining which class member(s) have the "largest financial interest," and have appointed Lead Plaintiffs with substantial losses in both absolute terms and as a percentage of their net worth. If you have sustained substantial losses in Broadcom Corp. securities during the Class Period, please contact Spector, Roseman & Kodroff, P.C. at classaction@spectorandroseman.com for a more thorough explanation of the Lead Plaintiff selection process. If you have relatively small losses, your ability to participate in any recovery will be protected by the Lead Plaintiff(s), and you need take no affirmative steps at this time.

If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel Robert M. Roseman toll-free at 888-844-5862 or via E-mail at classaction@spectorandroseman.com For more detailed information about the firm please visit its website at http://www.spectorandroseman.com

SPECTOR, ROSEMAN & KODROFF, P.C., located in Philadelphia, Pa. and San Diego, Calif., concentrates its practice in complex litigation including actions dealing with securities laws, antitrust, contract and commercial claims. The firm is active in major litigation pending in federal and state courts throughout the United States. The firm's reputation for excellence has been recognized on repeated occasions by courts which have appointed the firm as lead counsel in numerous major class actions involving violations of the federal securities laws and the federal antitrust laws, and consumer fraud. As a result of the efforts of the firm, and its members, hundreds of millions of dollars have been recovered on behalf of thousands of defrauded shareholders and companies.

More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca



        

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