Fidelity Investments has reached a settlement in its lawsuit accusing Broadcom of threatening to cut off access to software it said was essential to its operations. The Boston-based asset manager agreed to voluntarily dismiss the case after Broadcom committed to continue providing services and software to a Fidelity subsidiary, avoiding potential system outages or trading disruptions.
The dispute centered on virtualization software originally sold by VMware, which Fidelity has relied on since 2005 to manage virtual servers across its infrastructure. After Broadcom completed its acquisition of VMware in 2023, it restructured the product lineup into bundled offerings that Fidelity described as significantly more expensive. Fidelity alleged Broadcom refused to renew subscriptions under existing contract terms unless it agreed to purchase those bundles.
Fidelity warned that losing access to the software could disrupt customer account access, trading activity and internal systems across its platforms. The settlement ensures uninterrupted service and no impact on Fidelity’s operations, customers or partners, the company said. Broadcom did not immediately comment on the agreement.
