In the ongoing case AT&T Services, Inc. v. Broadcom Inc. in the New York Supreme Court’s Commercial Division, the parties announced on November 21, 2024, that they have reached a settlement in principle. The case involves Broadcom as the successor to VMware, Inc., following its acquisition. Both parties have requested an extension until December 13, 2024, to finalize their agreement and submit a joint letter addressing pending issues related to AT&T’s motion for a preliminary injunction. This development follows oral arguments held on October 23, 2024.
The dispute stems from AT&T’s claims against VMware, now under Broadcom’s ownership, regarding alleged breaches of contractual obligations and service agreements critical to AT&T’s operations. AT&T sought a preliminary injunction to address concerns over service disruptions and potential risks to its business continuity. The legal battle has been closely watched due to its implications for post-acquisition liabilities and service commitments in large-scale technology transactions, particularly following Broadcom’s high-profile acquisition of VMware. This settlement-in-principle may signal a resolution to these pressing issues without further prolonged litigation.
