Broadcom gets Wells notice from SEC
NEW YORK (Reuters) - Chip maker Broadcom Corp. (BRCM.O) received a Wells notice from the U.S. Securities and Exchange Commission stemming from an investigation into its historical option granting practices, according to a filing.
Broadcom co-founder Henry Samueli, the company's Chairman and Chief Technical Officer also received a Wells notice, the filing said.
A Wells notice gives a company or individual a final chance to convince the SEC not to file charges.
Broadcom, which makes chips for networking gear, mobile phones, video equipment and other communications products, is among dozens of companies being probed by federal authorities for possible manipulation of stock option grant dates.
Broadcom, which said in January that it would take a $2.2 billion charge to fix its accounting for improper backdating of stock option grants, is continuing to cooperate with the SEC, the filing said.
Broadcom and Samueli might each seek meetings with the SEC in response to the notices, according to the filing.
Federal officials conducting the investigation are also reportedly looking into allegations that former Chief Executive Henry Nicholas III used hard drugs and hired prostitutes.
