Stull, Stull & Brody announces shareholders class action lawsuit against Apple Computer

Press Release follows verbatim:

A class action lawsuit was filed yesterday in the United States District Court for the Northern District of California on behalf of shareholders who purchased securities and/or sold put options of Apple Computer, Inc. (“Apple” or the “Company”) (NASDAQ: AAPL) between December 1, 2005 through August 11, 2006, inclusive (the “Class Period”).

The Complaint charges that Apple and certain of its officers and directors violated Sections 10(b), 14(a) and 20(a) of the Securities Exchange Act of 1934 and Rules 10-b(5) and 14a-9 promulgated thereunder. The action alleges that defendants made false and misleading statements and omissions concerning Apple’s improper and undisclosed practice of backdating options conferred on certain executives which made it appear that such options were issued on dates when the market price of Apple stock was higher than actual market price on the actual grant dates. This improper backdating masked the virtually instant profits the option recipients obtained. Under generally accepted accounting principles, these profits were required to be recognized as an expense in the Company’s financial statements for the appropriate period, but were not. Thus, the Company’s financial statements in its Form 10-K filing for the fiscal year 2005 and interim financial statements for 2005 and 2006 were materially false and misleading. In addition, the Company’s Proxy Statement for its annual shareholder meeting held in 2006 was materially false and misleading because it contained statements concealing Apple’s practice of backdating stock options. The Complaint further alleges that as a result of defendants’ actions, plaintiffs and the Class were damaged.

Plaintiffs seek to recover damages on behalf of class members and are represented by the law firm of Stull, Stull & Brody, which has significant experience and expertise in prosecuting class actions on behalf of investors.

If you purchased Apple securities and/or sold put options on Apple shares between December 1, 2005 and August 11, 2006, inclusive, you may be a member of the class and have until October 24, 2006, to move the Court to serve as lead plaintiff, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements. To be a member of the class, however, you do not need to_take any action at this time. Should you decide to seek appointment asa lead plaintiff, you may retain Stull Stull & Brody, or counsel of your choice.

If you have any questions concerning this notice or your rights or_interests with respect to this matter, please contact Howard T. Longman of Stull, Stull & Brody at 973-301-0900 or toll free at 800-337-4983 or via e-mail at Tsvi@aol.com or by writing to Stull, Stull & Brody, 6 East 45th Street, New York, NY 10017.

Related articles:
Does Apple board member Al Gore have an options problem? – August 25, 2006
Shareholders allege Apple execs reaped ‘millions’ in unlawful profits – August 23, 2006
How options-backdating irregularities can affect your Apple Computer stock – August 23, 2006
Apple’s options imbroglio: Mac-maker granted options at or near key events in company’s history – August 18, 2006
Apple added to Nasdaq’s list of ‘delinquent companies’ – August 18, 2006
Apple unlikely to be delisted by NASDAQ – August 16, 2006
Apple CEO Steve Jobs drawn into stock options scandal – August 15, 2006
Apple announces update regarding stock option grants – August 11, 2006
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

44 Comments

  1. Another lawsuit filed courtesy of yet another class action firm’s Automated Lawsuit Generator.

    I mean, they are so greedy that they can’t even wait until Apple completes it investigation. Exactly who are they representing here? The individual shareholder? Certainly not, since AAPL hasn’t suffered to much recently, and the options “scandal” (how can it be truly a scandal when the details are still largely unknown?) was in no way linked to the fact that the stock was trading in the 80s earlier this year.

    This is like some DA announcing he’s going to charge murder charges on someone when the police says no one has been arrested yet.

    Greedy lawyers just can’t help themselves, apparently, because they’re afraid of being beat out by the other greedy lawyers.

  2. BTW, when are we going to rewrite the laws so that if a lawsuit is declared frivolous by the judge, the party bringing the suit would have to pay all legal expenses as well as a fine for wasting the court’s time?

    Not saying Apple’s hands are clean, but filing a lawsuit at this stage is called jumping the gun at the very least.

  3. Another bunch of scum-sucking, bottom-feeding asshat lawyers (heretoforeafter referred to as “lawyers”) casts their line looking for day-traders who want to maximise their ROI on investments in which they had no long-term interest.

    Any “real” investor in Apple should ignore this spam as it will consume management resources, delay new products and damage Apple’s share value far more than the alleged original misdemeanor.

  4. this looks suspiciously like a lawyer looking for a client. Sort of high tech ambulance chasing. Why else would they ask for someone to nominate as lead plaintiff?

    Sheesh – too many lawyers, make em all use Windows as punishment.

  5. ditto to the above…
    The lawyers are jumping the gun and filing on our, the shareholders, behalf. However, due to their search for a lead plaintiff, it appears that nobody asked them to file.
    This is just jumping the gun so that they can reap the rewards of the case rather than somebody else.
    dog eat dog.

  6. Yes, get rid of the lawyers. Only paralegals allowed. LOL

    Actually its the lawyers who win by a class action suit. They get the millions, the people get $10.00 off on the next software that they will not buy.
    And if you KILL the company in the process, who cares,— not the lawyers. 🙁

    Baa Humbug, I say.

    Actually lawyers are becoming a real problem in this country. THere are so many of them and they only want to make big dollar wins so they go for the stupid but deep pocket issues. And the ones actually hurt are really ignored in the name of profits for the lawyers.

    Sad state of affairs.
    N.

  7. “This is like some DA announcing he’s going to charge murder charges on someone when the police says no one has been arrested yet.”

    Actually it’s like a DA announcing he’s going to someone with murder before they even know if anyone is dead.

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