Billionaire Henrys, Nicholas and Samueli, Move to Settle Broadcom Shareholder Suits
"The Henrys," asHenry T. Nicholas
(right) andHenry Samueli
are known, had their billionaire asses saved in 2009 when a federal judge accused the prosecution of misconduct and eventually dropped all charges against Broadcom's co-founders. The judge also disappeared the case againstWilliam Ruehle
, Broadcom's former chief financial officer.
However, there was still the little matter of Broadcom shareholder suits against the Henrys, and Ruehle's $26 million damages suit against the Irvine-based semiconductor provider. That's "was" because those cases are now headed for settlements.
Under the terms of a deal that the Henrys have signed off on and is now pending before the U.S. District Court for the Central District of California:
- Nicholas will pay Broadcom $26.6 million;
- Samueli's unexercised stock options of $24.3 million will be canceled, and he'll kick $2.3 million in cash in to the charitable Broadcom Foundation;
- Ruehle will dismiss his suit against Broadcom;
- All three men will be dismissed from the consolidated shareholder litigation;
- Broadcom will pay $25 million to the shareholders' counsel and cut another $25 million check to the Broadcom Foundation.
Nicholas--of coke, hookers and secret sex-dungeon lore--stepped down from Broadcom in 2003 amid a crumbling marriage and 21 federal charges of options backdating and felony drug charges. He has since devoted his life to philanthropy.
Samueli, who was accused of lying to the SEC, resigned as Broadcom's chairman in 2008 and was suspended for a year as owner of the Anaheim Ducks before the NHL reinstated him once the federal case blew up. He has since returned to become Broadcom's chief technical officer.
He's also currently working behind-the-scenes to bring the Sacramento Kings to Anaheim and the Honda Center, which his arena-management company runs.
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