Fidelity Investments sued Broadcom in November 2025 to keep Broadcom from cutting off the VMware virtualization software that runs much of Fidelity’s technology infrastructure, and the two companies settled in January 2026 with Broadcom agreeing to continue providing the software and services. The Fidelity and Broadcom lawsuit was filed in Suffolk County Superior Court in Massachusetts by Fidelity Technology Group (FTG), and Fidelity voluntarily dismissed it after the settlement. Financial terms were not disclosed.1SRN News. Fidelity Settles Lawsuit Over Access to Business-Critical Broadcom Software2Massachusetts Lawyers Weekly. Fidelity Broadcom Software Access Lawsuit Settlement
Why Fidelity Sued
Fidelity Technology Group, a Fidelity subsidiary, had used VMware’s vSphere software since 2005 to create, host, and manage virtual servers across its data centers. The software supported a firm managing more than $16 trillion in assets under administration, 50 million individual customers, and 28,000 corporate clients. Fidelity also relied on Tanzu GemFire and NSX/Avi Load Balancer for data processing, networking, and load balancing.3RIABiz. Fidelity Unit Warns of Massive Outages Across Major Fidelity Platforms in New Lawsuit4SDxCentral. Broadcom Not Infallible in Fight With Ex-VMwarers as Another Court Battle Ends in a Settlement
On March 27, 2025, Fidelity told Broadcom it intended to renew its existing contracts under the original terms. According to the complaint, Broadcom refused and demanded that Fidelity buy the new bundled subscription packages instead. Fidelity called that an “unequivocal, definite, and final refusal to comply with their contractual obligations.”3RIABiz. Fidelity Unit Warns of Massive Outages Across Major Fidelity Platforms in New Lawsuit
Fidelity’s suit alleged breach of contract and warned of severe consequences if access were cut off. The complaint said Fidelity’s customer contact center would become unreachable by phone, chat, or email; employees would lose access to critical internal systems; and tens of millions of investors, along with broader financial markets, could be affected. Fidelity said migrating off VMware would take at least 18 to 24 months and was “technologically impossible” on short notice because its data sat in VMware’s proprietary format.5Yahoo Finance. Fidelity Sues Broadcom Over Access
What Fidelity Asked the Court To Do
Fidelity sought a court order stopping Broadcom from terminating its software access, which was scheduled to end on December 22, 2025. After the suit was filed, Broadcom agreed to push the termination deadline to January 21, 2026, giving a judge time to hear the case. A hearing on Fidelity’s preliminary injunction request was set for the week after that.5Yahoo Finance. Fidelity Sues Broadcom Over Access
The Settlement
The hearing never happened. On January 23, 2026, Fidelity and Broadcom announced a settlement under which Broadcom committed to continue providing its software and services to Fidelity Technology Group. A Fidelity spokesperson said services would “continue uninterrupted” with no impact on operations, customers, employees, or business partners.2Massachusetts Lawyers Weekly. Fidelity Broadcom Software Access Lawsuit Settlement
Fidelity moved to voluntarily dismiss the case in Suffolk Superior Court. Neither company disclosed the financial terms, the duration of continued access, or the specific licensing arrangement.2Massachusetts Lawyers Weekly. Fidelity Broadcom Software Access Lawsuit Settlement
How Broadcom’s VMware Changes Set Up the Fight
Broadcom closed its $61 billion acquisition of VMware in late 2023 and quickly restructured the product line. It ended perpetual license sales, stopped offering perpetual support renewals, and collapsed roughly 168 standalone products into a handful of subscription bundles. The two primary offerings became VMware Cloud Foundation (VCF) and VMware vSphere Foundation (VVF). Licensing also moved from a per-CPU model to a per-core model with a 16-core minimum per CPU.6Park Place Technologies. VMware Licensing Changes Details Implications Recommendations
Reported price increases across Broadcom’s customer base ranged from 200 percent to more than 1,000 percent depending on the customer and product mix. Customers who wanted continued support for existing software had no renewal path outside the new bundles, which often included products they did not need.7Avasant. Broadcom VMware Shake Up Rising Costs Subscription Shock and Enterprise Response
Broadcom CEO Hock Tan has defended the changes publicly, calling the old model “too complex and costly,” saying the VCF list price was cut in half compared to past pricing, and noting that existing perpetual licenses remained valid for use even without a new subscription. Broadcom also said it would provide free zero-day security patches for supported vSphere versions to customers who chose not to subscribe.8Broadcom. A Changing Market Landscape Requires Constant Evolution Our Mission for VMware Customers
Other Customers That Have Sued Broadcom
Fidelity’s suit fit a pattern. AT&T sued Broadcom in New York State Supreme Court on August 29, 2024, alleging breach of contract after Broadcom tried to push it off perpetual licenses and into bundled subscriptions. AT&T said the new model would raise its costs by 1,050 percent and jeopardize a network running 75,000 virtual machines across roughly 8,600 servers. The parties reached a confidential settlement in November 2024.9CIO Dive. Broadcom AT&T VMware Settlement Licensing Support Lawsuit
United Healthcare Services sued Broadcom in U.S. District Court for Minnesota in April 2025, alleging that Broadcom was trying to coerce it into paying “hundreds of millions of dollars more” by refusing to honor renewal commitments on CA mainframe software contracts. The insurer sought an injunction against a cutoff that could have hit as early as April 18, 2025. That case remained active as of early 2026.10Star Tribune. UnitedHealth Group Broadcom UnitedHealthcare Lawsuit Software Prices Contract Breach
Outside the United States, Rijkswaterstaat, the executive arm of the Dutch Ministry of Infrastructure and Water Management, went to court after Broadcom sought to move it from perpetual licenses to a subscription model that would have raised annual costs by 85 percent. In June 2025 the District Court of The Hague ordered Broadcom to provide up to two years of exit support at roughly €1.77 million per year while the agency migrates off VMware, with a penalty of €250,000 per day for noncompliance, capped at €25 million.11The Register. VMware Must Support Dutch Govt Agency’s Migration, Judge Rules The ruling has been cited by other enterprises seeking court-ordered time to migrate.