Funding
REGULATION WATCH:

Allstate Says Broadcom Ordered Four Audits After VMware Exit

Newsroom brief

Ars Technica reported that a June filing accused Broadcom of starting four audits after Allstate chose not to renew VMware and CA contracts. VMware and CA have separate cases against the insurer, while the filings leave its current virtualisation stack and production impact undisclosed.

Verified against source materialEdited by SendTech Times Capital & Policy DeskSource: Ars Technica
Allstate Says Broadcom Ordered Four Audits After VMware Exit
Image source: Ars Technica

A June 12 filing states that Allstate accused Broadcom of launching four software audits after the insurer decided not to renew VMware and CA Technologies contracts, widening VMware's lawsuit against Allstate into a dispute over licence checks and customer exits.

Ars Technica tied the filing to VMware's December 2025 lawsuit against the insurer.

In Allstate's filing, the insurer argues that VMware began a haphazard audit once it learned Allstate did not intend to renew contracts with VMware or CA.

VMware's complaint alleges that the insurer failed to comply with audit duties the complaint contends were required under the contract.

Allstate Says Four Audits Followed Its VMware And CA Exit

The June filing alleges that the software group simultaneously and unreasonably initiated four separate audits covering the insurer's licensed CA and VMware software.

Allstate maintains it met VMware's audit and reporting requirements in good faith and labels VMware's contrary claims unfounded.

The Register had described the relationship between the insurer and Broadcom as troubled for some time, according to the outlet.

The same outlet wrote that the insurer decided to move away from both VMware and CA around the time the VMware acquisition closed.

Broadcom declined to comment to the outlet.

The public source record leaves the insurer's response inside the court filings.

VMware Complaint Cites March 2025 Audit Notice

Records cited by the outlet show that the insurer and VMware have had a business relationship since 2008.

VMware's complaint states that it issued a formal audit notice in March 2025 and that the insurer acknowledged receipt of audit materials on May 7, 2025.

The complaint alleges that the insurer withheld requested materials after communication attempts from VMware and audit partner Connor Consulting.

VMware also pointed to a September 12, 2025, message in which the insurer said it had removed VMware from all devices and could no longer run scripts that depended on VMware components in its environment.

VMware's complaint further states that the insurer later told VMware in October that the VMware estate covered by the ELA had been ended and removed.

Allstate argues that its audit obligations were fulfilled.

CA Case Adds Symantec Product Dispute

The software group has a separate case against the insurer under CA Technologies.

According to the outlet, CA's May 2025 lawsuit accuses the insurer of copyright infringement and breach of contract after the sale of its Employer Voluntary Benefits business and Symantec products used by that business to StanCorp Financial Group.

As cited by the outlet, the CA complaint alleges that the insurer first addressed its notice to Symantec, even though that entity no longer existed, and did not send the same kind of letter to CA.

The two cases keep the post-VMware licensing disputes in court rather than in a commercial renewal process.

The outlet noted that May 17, 2027, is the deadline for dispositive motions in both cases, the filings that can ask the court to resolve the disputes before trial.

Current VMware Replacement Remains Unnamed

The filings place the insurer among enterprise customers that have challenged Broadcom's software-licensing posture after the VMware takeover.

The outlet named T-Mobile, Tesco and Western Union as other sizable companies that have moved or plan to move partly or completely away from VMware.

The filings do not identify how reliant the insurer was on VMware, the virtualisation technology it uses now, or whether the audits affected any current production systems.

Share this article
inXf

Related articles

More
MakeMyTrip Files Confidential India IPO For MMT India
Capital & Policy

MakeMyTrip Files Confidential India IPO For MMT India

Inc42 reported that MakeMyTrip has confidentially filed a draft red herring prospectus with SEBI for an India IPO of MakeMyTrip (India) Limited. The filing structure is an offer for sale by the Nasdaq-listed parent and GoIbibo, while price range, share count, listing date and final issue size remain undisclosed.

EU Orders Google To Open Android And Search Access To Rivals
Capital & Policy

EU Orders Google To Open Android And Search Access To Rivals

The EU has ordered Google to give rival AI assistants and search engines wider Android and Search access under the Digital Markets Act, The Verge reported. Google cited privacy and security risks, while the public record still lacks implementation dates, technical access specifications and an approved list of rival assistants.

Meta Ordered To Fund $567M New Mexico Youth Mental Health Plan
Capital & Policy

Meta Ordered To Fund $567M New Mexico Youth Mental Health Plan

Ars Technica reported that a New Mexico judge ordered Meta to provide $567 million for treatment, screening, awareness and prevention after finding that its platforms contributed to a public nuisance.

SoftBank Earnings Put OpenAI Funding Commitments Under Investor Test
Capital & Policy

SoftBank Earnings Put OpenAI Funding Commitments Under Investor Test

The Next Web reported that SoftBank faces investor questions over how it will finance more than $60 billion in OpenAI and AI-infrastructure commitments while debt maturities and Arm-backed borrowing stack up.

Court Leaves Minnesota AI Image Ban In Force Against xAI
Capital & Policy

Court Leaves Minnesota AI Image Ban In Force Against xAI

TechCrunch reported that a federal judge denied xAI an immediate order blocking Minnesota's nudification-app ban, shifting the dispute to an August preliminary-injunction schedule while the law takes effect.

Malaysia AI Agency Launch Leaves Sovereign Cloud Question Unassigned
Capital & Policy

Malaysia AI Agency Launch Leaves Sovereign Cloud Question Unassigned

Tech Wire Asia reported that Prime Minister Anwar Ibrahim launched AI Malaysia while raising unresolved sovereign cloud, US CLOUD Act and cybersecurity questions around the country’s AI governance plan.

Anthropic CEO Separates Open-Weight AI From China Risk
Capital & Policy

Anthropic CEO Separates Open-Weight AI From China Risk

Anthropic CEO Dario Amodei rejected claims that the company wants broad open-weight AI bans, while TechCrunch reported that he still backed chip controls, distillation crackdowns and global safety testing for the most capable models.

CIRCIA Rule Faces September Deadline As Industry Seeks Narrower Filings
Capital & Policy

CIRCIA Rule Faces September Deadline As Industry Seeks Narrower Filings

CISA is working toward a September target for the delayed CIRCIA rule as industry groups seek fewer covered entities, narrower incident triggers and leaner reporting requirements. The law sets 72-hour incident and 24-hour ransomware-payment reporting deadlines, while the proposed rule could cover more than 300,000 entities.

Keep Reading

More Stories

Latest
Hugging Face Hack Pushes AI Agents Into Cybersecurity SpotlightAIAug 8, 2026Hugging Face Hack Pushes AI Agents Into Cybersecurity SpotlightCNBC reported that Black Hat cybersecurity leaders treated the Hugging Face AI-agent breach as a turning point for governing autonomous cyber models rather than a one-off failure.Alibaba Tests Revenue Sharing For Commercial Qwen AI UseAIAug 8, 2026Alibaba Tests Revenue Sharing For Commercial Qwen AI UseAI News reported that Alibaba plans revenue-sharing terms for some commercial users of its next Qwen open-weight AI model, following a licensing pattern already used by Moonshot for Kimi K3.Harvey Funding Talks Could Lift Legal AI Startup To $15.5B ValuationAIAug 8, 2026Harvey Funding Talks Could Lift Legal AI Startup To $15.5B ValuationSiliconANGLE reported that Harvey AI is seeking at least $500 million in new funding that could value the legal AI startup at $15.5 billion after annualized revenue passed $350 million.Vietnam Shows Shopee-TikTok Shop Race Tightening In Southeast AsiaScience & TechAug 7, 2026Vietnam Shows Shopee-TikTok Shop Race Tightening In Southeast AsiaTech Collective SEA wrote that Shopee’s Vietnam share fell from 61% to 53% between May 2025 and April 2026 as TikTok Shop rose from 33% to 44%, showing how social commerce is reshaping regional ecommerce infrastructure.China Opens Security Review Of Palo Alto Networks ProductsCybersecurityAug 7, 2026China Opens Security Review Of Palo Alto Networks ProductsChina's cyberspace regulator opened a security review of Palo Alto Networks products, with no named product line, technical flaw or decision timetable disclosed.AI Pioneers Split Over Risk As Compute Buildout AcceleratesAIAug 7, 2026AI Pioneers Split Over Risk As Compute Buildout AcceleratesData Center Knowledge reported that Geoffrey Hinton, Fei-Fei Li and Andrew Ng disagreed at Ai4 over AI risk, jobs, openness and regulation, leaving infrastructure investors to plan capacity amid unsettled deployment rules.SpaceX Asks FCC To Wind Down $4.5bn Rural Broadband SupportTelco & ConnectivityAug 7, 2026SpaceX Asks FCC To Wind Down $4.5bn Rural Broadband SupportLight Reading reported that SpaceX urged the FCC to sunset High-Cost rural broadband subsidies, while rural telecom and electric-cooperative groups said LEO satellite coverage cannot replace terrestrial network support.OpenAI Expands Free ChatGPT Access In GPT-5.6 RolloutAIAug 7, 2026OpenAI Expands Free ChatGPT Access In GPT-5.6 RolloutBleepingComputer reported that OpenAI is rolling out GPT-5.6 Sol for paid ChatGPT users and GPT-5.6 Luna for Free and Go users, pairing unlimited free text chats with a new reasoning control and additional safeguards for users believed to be under 18.JLL Data Centre Report Shows Middle East Pipeline Pause As FLAPD GrowsCapital & PolicyAug 7, 2026JLL Data Centre Report Shows Middle East Pipeline Pause As FLAPD GrowsData Center Dynamics reported that JLL's EMEA Mid-Year Data Centre Report 2026 put FLAPD live capacity at 3.8GW, while the Middle East had 2.6GW in development paused and 13.8GW in planning.AWS Adds Persistent Runtime Instances For Production AI AgentsCloud & Data CentersAug 7, 2026AWS Adds Persistent Runtime Instances For Production AI AgentsAWS announced runtime instances for Amazon Bedrock AgentCore Runtime, adding managed infrastructure for multi-agent workflows, shared sessions lasting up to 14 days and GPU-supported production agent deployments.AI Patch Study Keeps Humans In Vulnerability ReviewsCybersecurityAug 7, 2026AI Patch Study Keeps Humans In Vulnerability ReviewsThe Register reported that 1Password Off-by-1 Labs tested 6,080 AI-generated patches across six CVEs and found clean autonomous fixes in 26.0 percent of cases, leaving security teams with a supervision problem rather than a replacement for vulnerability review.DOJ Trade-Fraud Unit Raises Payment Compliance ExposureFintech & Digital PaymentsAug 7, 2026DOJ Trade-Fraud Unit Raises Payment Compliance ExposurePYMNTS reported that a new U.S. Justice Department trade-fraud section and more than $1 billion in recent task-force recoveries are pushing banks to compare payment flows with customs and supply-chain records.