Fidelity Slams Broadcom in Lawsuit: VMware Software Cutoff Risks ’Catastrophic System Failures’

Financial giant Fidelity drops legal bombshell on Broadcom—claims abrupt termination of VMware support threatens core operations.

Subheading: When Tech Titans Clash

Fidelity's lawsuit alleges Broadcom's hardball tactics could trigger 'cascading failures' across critical systems. The asset manager—no stranger to risk—is now gambling on courtroom drama instead of market volatility.

Subheading: Virtualization Meets Real-World Consequences

VMware's enterprise software underpins Fidelity's infrastructure. Broadcom's post-acquisition licensing changes left the finance titan scrambling—proving even 'too big to fail' institutions rely on tech vendors playing nice.

Cynical closer: Nothing unites Wall Street and Silicon Valley like a good old-fashioned lawsuit—especially when maintenance fees are at stake.

Fidelity challenges Broadcom over VMware access

The lawsuit said VMware’s virtualization software has powered Fidelity’s VIRTUAL servers since 2005, and the company said it built most of its internal and customer-facing systems on top of that setup.

Fidelity said the software became central to how it handles account access, trade execution, and everyday service for its nearly 50 million customers.

Fidelity explained that this fight began in 2023 when Broadcom completed its purchase of VMware and changed the entire product lineup.

The filing said Broadcom took the older VMware tools and rebuilt them into new bundles that cost far more than the separate products Fidelity used for years.

Fidelity said that when it tried to renew its old subscription, Broadcom refused to honor the VMware contract. Fidelity said Broadcom pushed it to buy the new bundle instead of the tools it already used, which the company said would change its tech setup in a way that made no sense for its systems.

Fidelity argued that losing access on the date Broadcom first gave, December 22, would have made it impossible to keep its platforms running.

Fidelity’s filing said the company told the court it would need at least 18 to 24 months to MOVE to a new setup because of how deeply VMware runs through its servers.

The filing said Broadcom later agreed to extend the cutoff to January 21, giving the judge time to hear the case. Fidelity said this delay helps only for now, because the threat to its operations still stands if access ends.

Sharpen your strategy with mentorship + daily ideas - 30 days free access to our trading program