Class action lawsuit over stock options filed against Apple Computer, Inc.

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.

http://www.seattleclassaction.com/

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.

Related articles:
Wall Street forgiving of Apple’s stock option irregularities; CEO Jobs unlikely to be terminated – August 04, 2006
Apple’s stock option irregularities escalate into a scandal as world awaits Steve Jobs’ WWDC keynote – August 04, 2006
Apple warns of profit restatement dating back to 2002 – August 04, 2006
Apple loses 3.5% to $67.15 in premarket trading – August 04, 2006
Apple announces update regarding stock option grants – August 03, 2006
Shareholder’s options suit against Apple alleges ‘striking pattern that could not have been chance’ – July 11, 2006
Apple announces update regarding stock option grants – July 05, 2006
UBS: stock options probe unlikely to hurt Apple – June 30, 2006
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

39 Comments

  1. The media makes such a big deal whenever a lawsuit is filed, then its forgotten. Apple has their own lawyers and I’m sure they knew this was coming. It’s not a big deal. Just part of doing business in the 21st century.

  2. I spread my legs and took some pictures when I was younger and all you f-ckers wanna do is attack me 30 years later?!?

    I’m Dr. Goddamn Laura F-cking Schlessinger! If that’s the way you wanna play it, fine.

    Bring it on you bitches!!!

  3. Hey, remember when Florida home users couldn’t get AppleCare because Apple wouldn’t provide necessary company data to State agencies to protect consumers against extended warranty fraud?

    I went for three years without AppleCare because of Apple’s shady buisness practices.

    I was deprived of a essential extended warranty that was given to everyone else, just because of the State I lived in, because Apple refused to disclose data that would revel their involvement in criminal behavior.

    Apple is wrong and I deserve to be compensated and Apple should be slapped with a substancial punitive damage, for me and everyone denied AppleCare in Florida.

    Let’s sue, we got the goods.

  4. @Supporting Evidence

    So Apple edits contracts for other states, but not Florida? Must be a major corporate grudge against Florida – or maybe the laws in the other 49 states weren’t stupid?

  5. Well you know it wouldn’t take long before the whores came out of the wood work looking for free money.

    Just think about this one. Before the defendant can be found guilty and damages assessed, the plaintiffs have to prove they were damaged. Let’s see, if I bought AAPL in ’97, ’98, ’99, ’00, ’01, ’02, ’03, ’04, ’05, it was substantially lower than it is today. Therefore I profited.

    The plaintiffs are going to have to prove that they a/ paid too much for AAPL, or b/ sold it for too little. Doing that is going to be very difficult and even more expensive.

  6. As of this year, Apple now provides AppleCare for home users in Florida.

    Before they didn’t “meet the State terms” to disclose financial information, which is one of the requirements of the law.

    So Apple simply didn’t provide the information and thus didn’t have AppleCare for Florida home residents.

    The reason for that is now obvious, with the latest “cooked books” being discovered.

    Apple was hiding it’s criminal behavior, there is a case, get on board for free money.

    You know where to click.

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