Business Services Industry

Barrack Rodos Files Class Action Lawsuit Against Broadcom Corporation

Business Wire, March 15, 2001

Business Editors

PHILADELPHIA--(BUSINESS WIRE)--March 15, 2001

Counsel for Class Plaintiff, Barrack, Rodos & Bacine, today issued the following:

Barrack, Rodos & Bacine today announced that a class action has been commenced in the United States District Court for the Central District of California on behalf of purchasers of Broadcom Corporation ("Broadcom") (NASDAQ:BRCM - news) common stock during the period between July 31, 2000 and March 6, 2001 (the "Class Period").

To sign-up online: http://www.barrack.com/NewCases/NewCases.htm.> 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 material adverse information about agreements with certain companies it acquired, which essentially resulted in Broadcom buying its own revenues with warrants. 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 2/27/01, 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 2/27/01, and falling to $49.25 on 2/28/01. Then, on 3/6/01, Broadcom updated its outlook for 2001, indicating that 1stQ 01 revenues would be only $315-$325 million and $.08-$.09, respectively, and also revealed that it may change its accounting for warrants issued in connection with acquisitions. On this news, Broadcom's stock dropped to as low as $39-7/8.

The plaintiff seeks to recover damages on behalf of all purchasers of Broadcom securities during the Class Period, including those who purchased senior notes. He is represented by the law firm of Barrack, Rodos & Bacine, which has extensive experience in prosecuting investor class actions involving financial fraud. Barrack, Rodos & Bacine has prosecuted securities, antitrust and consumer class actions for over 25 years. The firm has offices in Philadelphia, San Diego, New York, Boston and New Jersey and has been designated lead counsel by federal and state courts across the country in large, complex securities class actions, including those against Cendant Corp. (the largest securities class action in United States history), McKesson HBOC, Inc., Informix Corporation, Sunbeam Corporation and hundreds of others. For more information about Barrack, Rodos & Bacine, please visit their website at http://www.barrack.com/.> If you are a member of the Class described above, you may, no later than May 4, 2001, move the Court 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 case or your rights or interests, please contact Maxine S. Goldman, Shareholder Relations Manager, at Barrack, Rodos & Bacine, 3300 Two Commerce Square, 2001 Market Street, Philadelphia, PA 19103, at 800/417-7305 or 215/963-0600, fax number 888/417-7306 or 215/963-0838 or by e-mail at mgoldman@barrack.com.