“A shareholder lawsuit filed in federal court alleges that Apple Computer directors improperly backdated stock option grants to 14 current and former officers on 17 dates between 1993 and 2001,” Kathleen Pender reports for The San Francisco Chronicle.
“‘In a striking pattern that could not have been the result of chance, each and every one of the … grants was dated just after a sharp drop and just before a substantial rise in Apple’s stock price,’ the suit says,” Pender reports. “On these 17 occasions, the change in Apple’s stock price starting 10 days before the grant and ending 10 days after ranged from 1.5 percent to 48.6 percent.”
“Apple has launched an investigation into its options grants and last week acknowledged the receipt — but not the contents — of two shareholders suits. The company had no further comment on the allegations Monday. ‘We are currently evaluating our response to the lawsuits,’ Apple spokesman Steve Dowling said,” Pender reports.
Full article here.
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Related articles:
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Apple joins growing list of companies entangled in stock option ‘irregularities’ – June 29, 2006
Apple to investigate stock option grant ‘irregularities’ made between 1997 and 2001 – June 29, 2006
Greedy senior management. The 90’s continue. SEC needs to start looking into more major corporations.
Oh boy, here we go…
Tsk. Tsk. Tsk.
Not that it’s right, but to be fair, the practice was widespread during the 90s, and in most cases it was all you could do to keep your Sr. staff from jumping ship to a company that would do the same thing for them.
Ah, the good ‘ol Clinton years of cooking the books. Those were good times eh?
It’s probably not “cooking the books” exactly. In the 90s many companies gave stock options and set the strike price at the lowest point that month. They thought they had that leeway. The effect was that there was, inevitably, some increase in the stock price right away. But there was no guarantee that the stock would continue to go up, or even stay up. Of course, a few companies went much further and were quite aware they were doing something that wasn’t allowed. I hope Apple wasn’t one of those.
At this point it’s simply an allegation.
Class action attorneys create these to line their own pockets.
I’m not saying that it’s not true, but…
What happened to innocent until proven guilty?
If Apple starts playing like Microsoft, they will end up like Microsoft.
If Apple starts playing like Microsoft, they will end up like Microsoft.
Except when Bill Gates enters the jailhouse, everyone will kick his ass, just to say they beat up the world richest man.
“What happened to innocent until proven guilty?”
Ever heard of posting bail?
In many cases these are difficult allegations to prove though it’s not unlikely that some of them are true. Let’s not ascribe a political climate to cases like this. You might find at the end of every President’s term of office that human beings are in fact greedy, self possessed, and unethical regardless of the laws in place, the political party in power and the level of enforcement. Human nature, after all, is what it is.
Who are the plaintiffs?
“Ah, the good ‘ol Clinton years of cooking the books. Those were good times eh?”
Yeah, it’s a good thing we finally got a president who really keeps big business in line. LOL.
Two lawsuits.
Two Apple shareholders bringing suits.
Two shares of Apple stock is all that is needed.
Two Lawyers on retainer to Microsoft filling in their spare time and racking up those billable hours.
Don’t you just love Lawyers.
“Ah, the good ‘ol Clinton years of cooking the books. Those were good times eh?”
A big part of the “Clinton years” book-cooking came about because when even mild proposals were floated in the Clinton era SEC that stock options need to be more closely monitored and better accounted for, the financial industry lobbyist class and its servants in the Republican congress would crank up the mighty Wurlitzer: “The socialist Clinton is trying to destroy the greatest engine of capitalism since the invention of double-entry accounting! They’re trying to take away the stock options that are making all you dotcom geniuses rich! Our economy will collapse unless he is stopped!”
(Brought to you by the word “party”, as in “Clinton Commies are trying to crash the stock options party!”)
I was wondering why all those execs where leaving. This is painful I hope Steve comes out of this ok.
FWIW – AppleInsider (yeah, I know) has a much more in-depth article (pics and all):
http://www.appleinsider.com/article.php?id=1875
<u>Disclaimer:</u> Innocent until proven guilty. Wait it out. People with MS conspiracy theories, please stop – that is absurd. Let the SEC investigate and uncover the truth (whatever that may be).