Fidelity Investments has agreed to settle its lawsuit against Broadcom after it threatened to cut off access to its VMware products for refusing to sign up to its Cloud Foundation (VCF) subscription.

An agreement to dismiss the case from the Massachusetts Superior Court was filed by both parties last week. According to Reuters, Fidelity agreed to dismiss its lawsuit brought against Broadcom in exchange for continued access to VMware software services for one of its subsidiaries.

"Broadcom’s services to Fidelity will continue uninterrupted, and there will be no impact on Fidelity’s business operations, customers, associates, or business partners," a Fidelity spokesperson said in a statement provided to SDxCentral.

Fidelity filed suit against Broadcom in November 2025, citing breach of contract. In a 16-page complaint, the investment company alleged that Broadcom refused to honor the pre-existing contractual right its subsidiary Fidelity Technology Group (FTG) had to renew its software access.

The subsidiary had been using VMware’s vSphere line as its “principal virtualization platform,” along with additional licenses for Tanzu GemFire, and NSX/Avi Load Balancer. But with FTG’s subscription set to end in December, Broadcom contacted the firm in March of that year to instead insist it take on one of its bundle subscriptions.

VMware’s post-acquisition software bundling has caused headaches aplenty for long-time customers, with many facing the prospect of having to pay more for a wider suite of services, many of which they’ll never use or want in the first place.

Fidelity’s subsidiary was among those disgruntled customers, with its lawsuit describing both the VCF and vSphere Foundation (VVF) bundles as “expensive.”

After Broadcom threatened to cut off its access should it not take up a revised bundle, Fidelity filed suit, contending that both it and its customers would “suffer irreparable harm” should it lose access.

The investment firm warned that losing access to its long-standing VMware services would have resulted in “massive outages” across its platforms, leaving its customers “unable to access their accounts, execute trades, or complete other transactions.”

Fidelity’s lawsuit also added that Broadcom’s short time frame to essentially pay up for a revised bundle or get out left it with little to no time to even migrate away to another virtualization platform by the time its license expired. Its suit suggested such a process would have taken 18-24 months, “if not longer,” and that to come off of VMware in the timeframe would have been “technologically impossible.”

A hearing in the dispute was due to take place next week to examine Fidelity’s request for an injunction seeking to prevent Broadcom from terminating its VMware access.

But the case has since settled, the latest in a growing number of VMware-related legal fights for Broadcom.

Telecom giant AT&T was among the earliest of disgruntled VMware users to take to the courts over the licensing changes, branding Broadcom a “bully” for trying to force the carrier into “paying a king’s ransom for subscriptions [it] does not want or need.” That dispute settled a month later, however.

Other cases don’t show signs of slowing, however, as British supermarket giant Tesco doesn’t look to be backing down in its breach of contract suit over changes to perpetual VMware license support. Another battle, with industrial conglomerate Siemens, has seen Broadcom attempt to stop the case from being moved from courts in the U.S. to Germany, arguing the case was not one of contractual concerns, but of copyright infringement.

One legal dispute that didn’t go Broadcom’s way was that of the Dutch water ministry’s efforts to extend exit support for its VMware products.

A court in The Hague ruled last June that the vendor was obligated to provide the water agency with an effective off-ramp from its services. Failure to do so would see Broadcom face penalties of $290,000 per day, up to a maximum of $29 million.

Meanwhile, CISPE, the trade association for cloud providers, has sought to pile further pressure on Broadcom, calling into question the EU’s timeframe for signing off on the VMware acquisition.

In a complaint filed last December, the group contends that during the lengthy 600+ day timeframe it took for the European Commission to sign off on the deal, Broadcom was free to implement “a whole raft of exponential price increases” and “unfair software licensing terms.”

Despite the various court cases from ex-VMwarers, Broadcom finds itself firmly in the green following its 2023 takeover.

The firm has signed up more than 90% of VMware’s 10,000 largest customers to VCF, while the software brand helped push Broadcom’s full-year revenues for 2025 up 24% year-over-year.

And just last week, Broadcom bagged another lucrative win for VMware, having secured a deal with the U.S. government to provide federal agencies' access to its suite of software solutions at a discounted price.