Apple announces update regarding stock option grants

Apple today announced that the Company will request a hearing before the NASDAQ Listing Qualifications Panel in response to the receipt of a NASDAQ Staff Determination letter today indicating that the Company is not in compliance with the filing requirements for continued listing as set forth in Marketplace Rule 4310(c)(14). As anticipated, the letter was issued in accordance with NASDAQ procedures due to the delayed filing of the Company’s Form 10-Q for the quarter ended July 1, 2006. Pending a decision by the Panel, Apple shares will remain listed on the NASDAQ Stock Market.

As first announced on June 29, 2006, an internal investigation discovered irregularities related to the issuance of certain stock option grants made by the Company between 1997 and 2001, and the Company has proactively informed the SEC. The Company is focused on resolving these issues as quickly as possible and plans to file its Form 10-Q following completion of the independent investigation by the special committee of Apple’s outside directors.

Related articles:
As expected, Apple delays quarterly results due to stock-options grants review – August 11, 2006
Some stock options grant decisions were made by Apple board, and potentially, CEO Steve Jobs – August 10, 2006
Disney: no material impact from Pixar options – August 09, 2006
Pixar options draw scrutiny – August 08, 2006
Apple stock options scandal? What scandal? – August 07, 2006
Class action lawsuit over stock options filed against Apple Computer, Inc. – August 04, 2006
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


  1. I think Apple’s stock touched $65.49 even with these news factored in on monday. News dont matter basicly, how much exposure it gets does, big companies that are short on apple’s stock are spending their own millions to drive the company stock down to make billions.

  2. How long does it take to work out Person X got Number Y shares and paid Z1 dollars but should have paid Z2 dollars instead.

    Then add up the difference etc in costs and amend the results for those affected quarters.

    Apple announced this a month ago. Surely they could have worked out the problems in a month.

  3. Just to show you how serious the feds are:

    “Apple receives delisting warning from Nasdaq”

    Plus, don´t think it couldn´t happen to the Steve?
    “On Thursday, both the former chief executive officer and the human resources officer at Brocade Communications Inc. were indicted for a scheme to backdate stock options.
    This week, former executives at Comverse Technology Inc. (CMVT were also charged with options-related securities fraud.”;={CE65C45C-C14E-4449-AACA-1DB1C42B5640}

  4. Yeh, Mercury (MERQ) got de-listed from nasdaq few weeks ago, their stock doubled.

    These news are not “serious”

    there are simply to many big corporations that are short on Apple’s stock.

    just watch, on any spark, the stock will fly to $75+

  5. STEVE JOBS IS GOING TO FRY!!! Just kidding!!

    Ok, we know that’s not going to happen because about 80 other US companies practiced the same thing.

    What’s going to get Apple is the fact that they mislead investors, actually Steve jobs did it because Apple was in pretty bad shape when Steve took over and needed to hide the truth a little.

  6. Yeah, that’s awful! I was so misled that I bought a few thousand dollars worth of AAPL back in 2003 at $14.98. Since then it’s split once (adjusted purchase price becomes $7.49), and it’s gone to $60+. Along the way I’ve traded in and out a bit and taken out enough to pay for some hefty college tuition bills. I still have nearly 6 figures in my AAPL portfolio. DAMN THAT STEVE JOBS AND HIS OPTIONS!!! I could have had $112 more, so let’s lynch Jobs and push the stock down to $30. That’ll teach him.


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