Despite judge’s ruling, NYC pension fund proceeds with lawsuit against Apple Inc.

“The pension fund for New York City’s public employees is pushing forward with its suit against Apple Inc. even though a federal judge’s ruling suggests shareholders don’t have a case against the company. A ruling last month by Judge Jeremy Fogel of U.S. District Court in San Jose, Calif., said the New York City Employees’ Retirement System could not sue Apple over backdating stock options. Because Apple’s stock has soared in value in recent years, Judge Fogel ruled that NYCERS hadn’t suffered damages. He advised NYCERS to join a derivative suit, on behalf of the company, which would mean plaintiffs would not stand to receive payouts. NYCERS decided not to heed the advice,” Joseph Goldstein reports for The New York Sun.

Full article here.

David Zeiler writes for The Baltimore Sun, “Talk about ungrateful… Over the course of 2006 AAPL went up, erasing any temporary setbacks caused by the backdating issue. The stock opened the year at $71.89 and closed it at $84.84. What possible damages could Apple owe any shareholders after achieving such extraordinary gains?”

“Not only is this lawsuit utterly futile, it could harm the very pension fund it is supposed to protect. Did NYCERS ever consider that filing and re-filing lawsuits against Apple could negatively affect the stock price? Wall Street has mostly forgotten about the whole thing; NYCERS would be wise to forget about it as well and save itself the lawyer’s fees,” Zeiler writes. “Instead of filing lawsuits, NYCERS should be writing Apple thank-you notes.”

Full article here.

35 Comments

  1. Typical lawyers and Typical NCYERs. Sorry NCYERs but you know it’s true, scrape for every penny even if it means shutting down the very thing that constitutes the bread and butter you and the rest of us clamor for. Do the right thing, call your legal reps. and call it off before you break something important to all of us.

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