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
F**king leeches. Maybe next time they’ll figure out a way to sue God for birth defects…
A Seattle based group of lawyers launch a trolling suit against Apple. I wonder if Baldmer is one of the claimants. I wonder if Krispy Kreme Glazer is one also.
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.
This is clearly a smear campaign from the MS guys…What a ridiculous knit to pick. Stock options, never mind that scores of other corporations are doing the same thing. It has to Apple that gets the egg on the face. Good luck MS, it isn’t any wonder that they released the “black hat” hacker invitation story at the same time.
Andrew Hamilton
Videographers in Las Vegas
http://www.hiproductions.com
These suits won’t get anywhere.
I sued God for a birth defect and won. Then I had a stroke.
Steve Jobs is going to fry
Judge Judy
Don’t take the cheese.
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!!!
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.
I prefer to die by firing squad.
@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?
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.
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.
Hamilton Productions: it pick nits not pick knits. Nits being the eggs of head lice.
Seatle = micrsoft = say no more
It is almost embarrassing to read how many people think that this is some Microsoft conspiracy to bring down Apple.
Some individuals who once held high positions in the company broke the law, plain and simple.
That every other company is doing it is being used as an excuse is even more disappointing.
If your someone who settles for mediocrity than you have no business using Macintosh computers.
If my best friend was arrested for drunk driving, I would expect him to receive a just penalty, regardless of how many other people drive drunk.
The analogy applies to Apple Computer.
That so many people seem to have such a double standard is truly disappointing.
If your posts were written in sarcastic jest, I would advise putting a tag next time, such as ::sarcasm:: or [sarcasm] as to make quite clear your tone.
*your = you’re
Dankman,
I agree entirely.
But many here among us are like football (soccer) fans, they see the fouls against – but not those commited by – their own team.
“But many here among us are like football (soccer) fans, they see the fouls against – but not those commited by – their own team.”
Fortunately Zidane makes it quite easy to distinguish them…. ::chuckles::
Ambulance Chaser,
Apple was hiding it’s criminal behavior, there is a case, get on board for free money.
Fuck yourself.
What a dirtbag point of view. Never mind that anyone was actually hurt, in your view it’s all about the free money. We know how it works: cushy legal fees for the attorneys, scraps for everyone else.
Here’s to the day gold-digging lawyers, ones like you, are turned into felons.
Since Apple is a high profile company a judge will want to make an example of their crimes and throw the book at them.
It will take a while but people at Apple are looking at jail time or stiff fines or both.
And Apple did not do it one time, but had a pattern of doing it. They knew they were committing a crime, but continued to do it. They potentially cheated/deceived investors and cheated the U.S. public by not paying the proper amount taxes.
What if Apple´s profits for the last 4 years were actually losses? Would Apple stock risen like it has? Would the Steve being getting all the glowing press?
Since Apple is a high profile company a judge will want to make an example of their crimes and throw the book at them.
It will take a while but people at Apple are looking at jail time or stiff fines or both.
And Apple did not do it one time, but had a pattern of doing it. They knew they were committing a crime, but continued to do it. They potentially cheated/deceived investors and cheated the U.S. public by not paying the proper amount taxes.
What if Apple´s profits for the last 4 years were actually losses? Would Apple stock risen like it has? Would the Steve being getting all the glowing press?
Obviously, Apple is the victim of a Microsoft plot…but even then, Apple is making stock options “just work”, the way they went about it, unlike Microsoft, is elegant and unlike Microsoft they are 100% IRS free.
Guy steals a car. Guy realizes he is going to be caught by the police.
Guy turns himself in.
Cool.
But he still committed the crime of stealing the car.
Guy is charged with crime.