Allstate Insurance Company has contested allegations from Broadcom, asserting that the technology company issued licensing audits as a retaliatory measure following Allstate’s announcement that it would not renew its business relationships with VMware and CA Technologies.
The dispute stems from litigation that VMware filed against Allstate in December 2025. In that complaint, Broadcom alleged non-compliance with license audit requirements specified in the contract between the two parties. However, Allstate countered in a June 12 filing, contending that the audit initiative was prompted by Broadcom’s awareness of Allstate’s intention to exit its agreements with both VMware and its sister company CA.
According to court documents, Allstate and VMware have maintained a commercial relationship since 2008. VMware’s complaint indicates that a formal audit notice was issued to Allstate in March 2025. The complaint further states that despite Allstate’s acknowledgment of receiving audit materials on May 7, 2025, and repeated outreach efforts by VMware and its audit partner Connor Consulting, Allstate allegedly failed to provide requested documentation. The complaint notes that in September 2025, Allstate informed VMware’s consultant that it had removed VMware from all systems and could no longer execute required audit scripts due to the absence of VMware components. By October 2025, Allstate reported that all VMware instances had been terminated.
Allstate’s position differs significantly, stating in its June filing that after announcing its decision not to renew contracts, Broadcom simultaneously launched four separate audits across its licensed CA and VMware software usage. Allstate maintains that it substantially and in good faith fulfilled all audit and reporting obligations outlined in its VMware contract. Broadcom has also filed a separate lawsuit through CA Technologies, alleging copyright infringement and breach of contract related to Allstate’s sale of its Employer Voluntary Benefits business to a Oregon-based insurance company.
Allstate has become one of numerous large enterprises that have opted to migrate away from VMware following Broadcom’s acquisition of the company. Other notable organizations departing from VMware include T-Mobile, Tesco, and Western Union. Both cases involving Allstate have deadlines of May 17, 2027, for parties to submit dispositive motions.
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