The plaintiffs alleged that Broadcom’s stock was overvalued due to inappropriate accounting treatment of performance-based warrants issued in acquisitions.
The plaintiffs alleged that Broadcom’s stock was overvalued due to inappropriate accounting treatment of performance-based warrants issued in acquisitions. Using a percentage-based inflation approach and a computer trading model, the plaintiffs’ expert initially alleged class damages in excess of .6 billion.
The case ultimately settled for approximately 0 million.
Cornerstone Research worked with four experts who reviewed the event study approach used by the plaintiffs’ expert and determined that his trading model had no scientific validity. Additionally, Cornerstone Research supported Broadcom’s attorneys in achieving several key legal victories, including the exclusion of the aggregate damages testimony of the plaintiffs’ expert.
Cornerstone Research also advised on the implications of the recent Broudo v. Dura Pharmaceuticals ruling on the plaintiffs’ claimed damages. The case ultimately settled for approximately 0 million.