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Allstate Accuses Broadcom of Auditing After Quitting VMware

Created at 9 Jul · 8:35 PM1 source↑ Market-relevant
IN SHORT

Allstate claims Broadcom initiated multiple audits after the insurer decided not to renew contracts for VMware and CA software. Allstate asserts it fulfilled its audit obligations and disputes Broadcom's claims of copyright infringement and breach of contract.

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Key Numbers

September 12, 2025Date Allstate informed VMware of removal
May 17, 2027Deadline for dispositive motions

Who's Involved

Allstate
Insurance company accusing Broadcom of initiating audits
Broadcom
Technology company facing accusations of initiating audits and suing Allstate
VMware
Software company whose contracts Allstate terminated
CA Technologies
Subsidiary of Broadcom involved in a separate lawsuit with Allstate
StanCorp Financial Group
Oregon-based company that purchased Allstate's business unit
Allstate Accuses Broadcom of Auditing After Quitting VMware

↳ Why This Matters

The lawsuits reveal potential aggressive business practices by Broadcom concerning its software licensing and audits, particularly following customer departures from VMware. This could impact how other enterprise clients manage their software contracts and relationships with Broadcom.

Key facts

  • Allstate alleges Broadcom initiated multiple audits after Allstate terminated its VMware and CA software contracts.
  • Allstate claims it substantially complied with audit requirements and disputes Broadcom's claims.
  • Broadcom also has a separate lawsuit against Allstate for alleged copyright infringement and breach of contract.
  • The cases involve Allstate's use of VMware and CA software, with disputes over contract compliance and business sales.
  • Dispositive motions are due by May 17, 2027, for both legal actions.

Allstate has accused Broadcom of initiating multiple audits of its software usage following the insurer's decision to terminate its contracts with VMware and CA Technologies. According to Allstate's June filing, Broadcom "simultaneously and unreasonably initiated four separate audits" after Allstate decided not to renew its VMware and CA contracts.

Allstate stated that on September 12, 2025, it informed VMware's consultant that VMware had been removed from all devices, rendering the scripts provided by Broadcom unusable. In October, Allstate reportedly followed up, confirming the termination of all VMware instances and asserting that its audit obligations were fulfilled.

However, Allstate's account differs from the claims made by Broadcom. In its own filing, Allstate asserted that it "substantially and in good faith complied with the audit and reporting requirements" outlined in its contracts with VMware, deeming the plaintiff's claims unfounded.

Broadcom is also pursuing a separate legal action against Allstate concerning CA Technologies. Filed in May 2025, this lawsuit alleges copyright infringement and breach of contract related to Allstate's sale of its Employer Voluntary Benefits business and associated Symantec products to StanCorp Financial Group. CA alleges that Allstate failed to provide a proper notice to CA regarding this transaction.

In both legal battles, the parties involved have until May 17, 2027, to submit dispositive motions, which could potentially resolve the cases without a trial. These ongoing disputes highlight Broadcom's aggressive approach to customer agreements and its willingness to engage in litigation with former clients.

Frequently asked questions

Allstate decided not to renew its contracts for VMware and CA software.

Broadcom accuses Allstate of copyright infringement and breach of contract, particularly concerning the sale of a business unit and non-compliance with software audit requirements.

Allstate claims it substantially complied with audit requirements and that Broadcom's claims are unfounded. They also state that removing VMware made Broadcom's scripts unusable.

Both parties have until May 17, 2027, to file dispositive motions.

What Happens Next

01Parties have until May 17, 2027, to file dispositive motions.

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Cadence

How It Developed

Allstate informed VMware's consultant on September 12, 2025, that it had removed VMware from all devices.
Allstate followed up in October stating all VMware instances were terminated and audit obligations fulfilled.
Allstate claimed in a June filing that Broadcom initiated four separate audits after Allstate decided not to renew VMware and CA contracts.
Broadcom has a separate case accusing Allstate of copyright infringement and breach of contract related to selling a business unit.
Both parties have until May 17, 2027, to file dispositive motions.

Sources

T1
Allstate accuses Broadcom of auditing it because it quit VMware, CAvar abtest_2162471 = new ABTest(2162471, 'impression');Ars Technica

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