Broadcom Derivative Action
Mr. Weiser was co-lead counsel in the Broadcom Derivative Action. Like the Oracle case, the Broadcom Derivative Action was also produced a ground-breaking settlement. In connection with the eventual settlement of the Broadcom Derivative Action, plaintiffs were able to compel Broadcom to make sweeping, substantial changes to its corporate governance practices which included a provision which allows Broadcom’s shareholders to nominate directors to Broadcom’s Board. In particular, the shareholder-nominated director provision was thought to be a highly significant and unusual achievement for Broadcom’s shareholders. As the Associated Press reported in commenting on the settlement: A[in contrast to the Broadcom settlement] the Securities and Exchange Commission has met fierce resistance to a proposal just to allow shareholder nominations under very limited circumstances. This type of corporate governance relief has only been achieved in a handful of shareholder derivative actions.
David, et al., v. Wolfen, et al., Lead Case No. 01-CC-03930 (the Broadcom Derivative Action)