Allstate says Broadcom audits followed VMware and CA exit plans
The insurer says Broadcom launched unreasonable audits after it chose not to renew VMware and CA contracts, while VMware says Allstate resisted required checks.
By James Whitfield · Staff Writer
3 min read
Allstate Insurance Company has accused Broadcom of turning software license audits into a pressure tactic after the insurer decided to end business with VMware and CA Technologies. The dispute matters because it adds another large enterprise customer to the legal fights surrounding Broadcom’s handling of VMware after its acquisition.
The allegations appear in litigation tied to a December 2025 lawsuit VMware filed against Allstate, according to court filings and reporting by The Register. VMware, now owned by Broadcom, claims Allstate failed to comply with contractually required license audits.
Allstate said in a June 12 filing that VMware began what the insurer called a disorganized audit after learning Allstate did not plan to renew agreements with VMware or its sister company CA. Broadcom declined to comment to Ars Technica.
VMware says Allstate blocked an audit
According to VMware’s complaint, Allstate and VMware had done business since 2008. VMware says it sent Allstate a formal audit notice in March 2025 and that Allstate acknowledged receiving audit materials on May 7, 2025.
VMware alleges that Allstate then failed to provide the requested information despite repeated outreach from VMware and its audit partner, Connor Consulting. The complaint says Allstate “continued to stonewall and withheld the requested materials.”
VMware’s complaint says Allstate told Connor Consulting on September 12, 2025, that it had removed VMware from all devices and could no longer run scripts supplied by Broadcom because they depended on VMware components still operating in Allstate’s environment.
VMware says Allstate followed up in October by saying all VMware instances had been terminated and removed from its VMware enterprise license agreement environment. According to VMware, Allstate also said its audit obligations had been satisfied.
Allstate says the audits were unreasonable
Allstate gives a different account in its June filing. The insurer says that after it chose not to renew VMware and CA contracts, Broadcom “simultaneously and unreasonably” started four separate audits covering Allstate’s use of licensed CA and VMware software.
Allstate says it substantially complied and acted in good faith with VMware audit and reporting requirements. It denies VMware’s claim that it failed to meet those obligations.
The Register reported that Allstate decided to move away from both VMware and CA around the time Broadcom’s VMware acquisition closed, and that the relationship between Allstate and Broadcom had been strained for some time. The Register said it was unable to obtain comment from Allstate.
The case places Allstate among other large companies reported to be moving some or all workloads away from VMware after Broadcom’s takeover. Reports have also cited T-Mobile, Tesco and Western Union among sizable customers shifting away from VMware or involved in disputes over Broadcom’s practices.
A second CA Technologies case
Broadcom is also pursuing a separate case involving CA Technologies. In a May 2025 lawsuit, CA accuses Allstate of copyright infringement and breach of contract tied to the sale of Allstate’s Employer Voluntary Benefits business and Symantec products used by that business to Oregon-based StanCorp Financial Group.
CA alleges Allstate initially sent notice to Symantec, which CA says no longer exists, but did not send a similar notice addressed to CA. The filing says the dispute involves products used by the business Allstate sold.
In both cases, the parties have until May 17, 2027, to file dispositive motions, which would ask the court to resolve the claims without a trial. Allstate has not said how dependent it was on VMware or what virtualization technology it uses now.
This story draws on original reporting from Ars Technica.