Broadcom counsel may face SEC suit

Securities regulators may sue the top lawyer at wireless chip maker Broadcom Corp. for alleged backdating of stock options, the Irvine company said in a public filing Tuesday.

The Securities and Exchange Commission sent a notice to David Dull, Broadcom’s general counsel, that he faced a civil lawsuit from the government. Dull did not return a message left at his office.

Broadcom is one of more than 100 companies investigated for allegedly backdating stock options, an action that can boost stock gains for insiders at the expense of shareholders. Broadcom restated financial results for 1998 to 2005 to make adjustments totaling $2.2 billion, the largest of any company targeted in the probes.

The so-called Wells notice gives companies and individuals a chance to respond if the agency decides to pursue a lawsuit. Last month, the SEC sent Wells notices to Broadcom and its chairman, co-founder Henry Samueli.

The company has blamed former Chief Executive Henry T. Nicholas III and former Chief Financial Officer William Ruehle for the improper accounting.

Company spokesman Bill Blanning didn’t return a voice mail or an e-mail seeking comment.

Broadcom shares fell 60 cents to $34.44.