Keller Rohrback L.L.P. announces that a shareholder derivative complaint has been filed in the United States District Court for the Northern District of California on behalf of nominal defendant Apple Computer, Inc. and against certain Company executives and board members.
The complaint alleges that the defendants breached their fiduciary duties and colluded with one another to: (1) improperly backdate grants of Apple stock options to various Apple executives in violation of the Company’s shareholder-approved stock option plans; (2) improperly record and account for the backdated stock options in violation of GAAP; (3) improperly take tax deductions based on the backdated stock options in violation of the Tax Code; and (4) produce and disseminate to the Company’s shareholders false financial statements and other SEC filings that improperly recorded and accounted for the backdated option grants thereby concealing the improper backdating of stock options.
Apple had previously announced an internal investigation related to the issuance of certain stock option grants made between 1997 and 2001. Yesterday, the Company announced that although the investigation is ongoing, the Company had discovered additional evidence of irregularities and in light of that, Apple would likely need to restate its historical financial statements.
MacDailyNews Note: This is at least the third such lawsuit filed against Apple for stock option irregularities. In early July, Apple announced that two suits had been filed, one in the United States District Court for the Northern District of California, a federal court, and the second suit in the California Superior Court for Santa Clara County.
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