Boston, November 17, 2025 – A subsidiary of Fidelity Investments has filed a lawsuit against Broadcom Inc. (AVGO.O), claiming that the technology company threatened to cut off access to critical software that underpins Fidelity’s financial systems. Fidelity warned that the termination could cause massive outages and trading disruptions unless a court intervenes.

Fidelity Technology Group, a Boston-based subsidiary of the asset manager, filed the suit in Suffolk County Superior Court, stating that its business faces “enormous” harm if Broadcom terminates its access to the software after January 21, 2026.

Background on the Software Dispute

Fidelity has relied on virtualization software sold by VMware since 2005 to create, host, and manage virtual servers on its physical servers. Over time, this software became central to Fidelity’s operations, supporting critical functions for its roughly 50 million customers and $17.5 trillion in assets under management.

In 2023, Broadcom completed its acquisition of VMware and repackaged VMware’s virtualization products into high-cost bundles. Fidelity alleges that when it attempted to renew its subscription, Broadcom refused to honor its contractual renewal rights and instead demanded purchase of the more expensive bundle.

Fidelity’s complaint, made public on Friday, asserts that without access to the software:

• Customers could be locked out of accounts and unable to execute trades
• Employees would lose access to key internal systems
• Platform outages could disrupt financial markets

Fidelity characterized Broadcom’s actions as a breach of contract and highlighted that migrating away from the software would be technologically impossible before the original termination date of December 22, requiring 18 to 24 months to complete.

Court Developments

On Friday, Broadcom filed a response agreeing to extend Fidelity’s software access through January 21, 2026, allowing time for a judge to hear the case. Fidelity has urged the court to issue an injunction preventing Broadcom from terminating access, citing the severe operational and market risks.

The case underscores the growing reliance of financial institutions on critical IT infrastructure and the risks posed when key software vendors change licensing terms or product structures. Analysts note that the dispute highlights broader concerns in the financial sector regarding vendor lock-in and IT resilience.