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A memo on the Broadcom CA transaction triggered a US federal stock fraud investigation

via:CnBeta     time:2018/10/12 9:31:52     readed:129

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Broadcom quoted the Ministry of Defense as saying that the memo was forged.

People familiar with the matter said both the Justice Department and the Securities and Exchange Commission are investigating whether the memo may be intended to manipulate stock prices. Shares in Broadcom and CA fell on Wednesday as the merger of the two was closely scrutinized. Senator Rand Paul called on a national security team to investigate the acquisition of the software company CA by semiconductor company Broadcom for $19 billion. The two companies have said that the transaction will be completed before the end of the year.

According to a person familiar with the situation, Broadcom contacted the authorities on the memorandum and was told that the investigation had begun.

They said that the investigation of the Ministry of Justice was carried out by the Southern District of New York, which has jurisdiction over Wall Street and often takes the lead in executing stock manipulation and other securities fraud cases.

Representatives from the Department of Justice and the US Securities and Exchange Commission declined to comment.

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