Seeger Weiss LLP Announces Class Action Lawsuit Filed Against Broadcom Corp. and Its Officers and Directors

Business Wire, March 15, 2001

Business Editors & Legal Writers

NEW YORK--(BUSINESS WIRE)--March 15, 2001

The following is an announcement by the law firm of Seeger Weiss LLP:

Pursuant to 15 U.S.C. 78u-4(a)(3)(A)(i), Seeger Weiss LLP hereby gives notice that on March 14, 2001, a class action lawsuit was filed in the United States District Court for the Central District of California on behalf of all persons who purchased the publicly traded securities of Broadcom Corp. (Nasdaq:BRCM - news; "Broadcom" or the "Company"), from July 31, 2000 through March 6, 2001, inclusive (the "Class Period"), and who were damaged thereby.

Broadcom is a provider of integrated silicon solutions that enable broadband digital transmission of voice, video, and data.

The complaint charges Broadcom and certain of its officers and directors with violations of the Securities Exchange Act of 1934. This action involves defendants' dissemination of materially false and misleading statements concerning, among other things, the Company's financial condition. The complaint alleges that, during the Class Period, defendants made positive but false statements about Broadcom's results and business, while concealing material adverse information concerning agreements with certain companies it acquired, which essentially resulted in Broadcom buying its own revenues. As a result, Broadcom stock traded at artificially inflated prices, permitting the three individual defendants to sell $45.8 million worth of their Broadcom stock.

On February 27, 2001, the Wall Street Journal published an article concerning the legitimacy of Broadcom's practices in granting warrants to customers in exchange for purchasing product. Immediately following the article, Broadcom's stock price dropped 16%, closing at $53.625 on February 27, 2001, and falling to $49.25 on February 28, 2001. Then, on March 6, 2001, following an announcement by the Company concerning updated estimates for first quarter revenues and a possible change in accounting for warrants issued in connection with acquisitions, Broadcom dropped to as low as 39-7/8.

Plaintiff seeks to recover damages on behalf of all purchasers of Broadcom stock during the Class Period (the "Class") and has retained the law firm of Seeger Weiss LLP. Seeger Weiss LLP maintains offices in New York City and New Jersey and is active in major complex commercial litigations pending in federal and state courts throughout the United States.

If you are a member of the Class described above, you may move the Court, not later than 60 days from March 5, 2001, to serve as lead plaintiff of the Class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements.

If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to this matter, please contact plaintiff's counsel listed below.