$AVGO: VMware Cloud Foundation 9.0 Goes AI-Native — Yet $102.5M Settlement Overhang Persists
Court: N.D. California
Case: 5:20-cv-02182
At VMware Explore 2025, Broadcom 
AVGO unveiled VMware Cloud Foundation 9.0, positioning it as an AI-native private cloud platform. The release integrates VMware Private AI services, allowing enterprises to deploy large language models, RAG, and GPU scheduling directly within secure environments. Partnerships with AMD, Intel, Canonical, and NVIDIA highlight Broadcom’s push to dominate enterprise AI infrastructure. While the stock response has been muted so far, investor optimism around AI-driven growth is tempered by the company’s ongoing $102.5M securities settlement.
- VMware Cloud Foundation 9.0 to deliver native AI workloads in private clouds.
- Private AI services include LLMs, retrieval-augmented generation, and GPU scheduling.
- Strategic partnerships with AMD, NVIDIA, Intel, and Canonical boost enterprise credibility.
- VMUG + Broadcom Knights deepen customer and community engagement.
- $102.5M settlement tied to sales backlog misstatements still weighs on sentiment.
Timeline Overview
- Aug 23, 2018 — Class period begins; VMware reports strong sales momentum.
- 2019–2020 — Company discloses declining sales backlog, sparking investor concern.
- Feb 27, 2020 — Class period ends as shares fall on reduced backlog disclosures.
- Oct 4, 2024 — Settlement agreement reached.
- Mar 31, 2025 — Settlement fairness hearing scheduled.
Allegations Include
- Misrepresenting sales backlog and revenue timing.
- Omitting material risks tied to deal recognition.
- Artificially inflating stock price through misleading disclosures.
- Violating Exchange Act §10(b) and Rule 10b-5.
Investor Update
The $102.5M cash settlement compensates shareholders but leaves residual credibility issues. While Broadcom positions VMware as the backbone of enterprise AI adoption, investors remain alert to governance, disclosure, and transparency risks tied to its litigation history.
You can check more information about it HERE.