Injustice by Etrade while handling stock conversion during Broadcom acquisition of VMware

3,603

The Issue

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

The Decision Makers

E*Trade Financial
E*Trade Financial

Petition Updates