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The Irvine-based semiconductor manufacturer is now talking about $1.5 billion in compensation expenses from past stock option grants - and possibly a lot more. Financial results from 1998 to 1999 will have to be restated. Broadcom said that it has been informally contacted by the U.S. Attorney's Office and is cooperating with the Securities and Exchange Commission's inquiry into stock-option grants. Shares in the stock have edged lower over concerns that the options problems might result in a management shakeup.
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