Broadcom case to go forward

A judge Monday denied a request by Broadcom Corp. founders Henry Nicholas and Henry Samueli and other company directors to dismiss a lawsuit filed by investors accusing them of improperly backdating stock options.

U.S. District Judge Manuel Real made the ruling at a hearing in Los Angeles federal court without further comment.

Real last month denied a similar motion by the Irvine-based company to dismiss the case for lack of merit.

Broadcom shareholders sued last year, claiming directors breached their duties and wasted assets by letting executives backdate stock options so they could exercise their grants at lower share prices.

In January, Broadcom restated its financial results for 1998 to 2005 to reflect the $2.2-billion cost of the misdated options.

A maker of semiconductors for cable television boxes, mobile telephones and other consumer electronics, Broadcom is under investigation by the Securities and Exchange Commission and the Justice Department over the backdating.