VMware acquisition by Broadcom during November 2023 led to cash and Broadcom shares for VMware employees/shareholders. E*trade classified cash buyback as dividend and not capital gains, causing major tax issues for thousands of employees across the globe, holding VMware stock during the conversion. 

E*trade has no right to withhold the hard earned money of employees wrongly. So far there is no resolution from E*trade regarding this matter. The ask here is for E*trade to correct their mistake and avoid showing the conversion as dividend.

E*trade should also fix the cost basis for stock which were converted. Currently the cost basis is 0 (and not the actual price) which again creates additional tax burden for employees holding the stock.

For more details:

https://www.youtube.com/watch?v=sSL3GDZX_zs​

https://twitter.com/kanandbhatt/status/1769961879223357901?s=52&t=28Pyo9j-kz5Z9bunS4lZkQ