GT Advanced COO claims Apple used ‘bait and switch’ tactic

“Apple Inc. used ‘bait-and-switch’ tactics in negotiating a contract with sapphire-maker GT Advanced Technologies Inc. (GTATQ), guaranteeing itself ‘heads I win, tails you lose’ terms, a GT executive said in an unsealed court document,” Dawn McCarty and Phil Milford report for Bloomberg. “”

“Daniel Squiller, chief operating officer of GT Advanced, blamed the company’s losses on Apple, with which it had a supply agreement, in a bankruptcy court declaration,” McCarty and Milford report. “‘With a classic bait-and-switch strategy, Apple presented GTAT with an onerous and massively one-sided deal in the fall of 2013,’ the executive wrote. ‘When GTAT’s management expressed obvious concerns to Apple regarding the deal terms during the contract negotiations, Apple responded that similar terms are required for other Apple suppliers and that GTAT should ‘Put on your big boy pants and accept the agreement.””

“Apple countered that it ‘committed to put at risk up to $2 billion in connection with this project’ and that it bent over backward to work with GT Advanced,” McCarty and Milford report. “Apple made payments even when the GT Advanced failed to meet deadlines, lawyers for the computer company wrote.”

Read more in the full article here.

MacDailyNews Take: Did GT Advanced sign the deal with Apple? if so, you live and die by it, big boy pants or not.

Related article:
Court unseals GT Advanced documents: Apple says it ‘bent over backwards’ to help sapphire supplier – November 7, 2014

26 Comments

    1. They are under investigation for insider trading. . . it looks as if just days before they declared bankruptcy, someone in their upper management unloaded a bunch of shares. That is a BIG NO-NO. They are piling on smoke and mirrors trying to distract from that.

  1. It’s all a distraction by GT to put the focus on Apple instead of the pokus on their con templated bankruptcy and who knows what other shenannigans aside from the executive’s (I play one on tv…ha)- ‘inexplicably dumb’ stock sale before the filing.

    This isn’t a lawsuit and they wouldn’t have a leg to stand on if it was their defence for breach of contract, even in Lucy’s court .

    1. It takes one to know one… GTAT is the bait and switch performance king.

      Smoke, meet mirror, as stated above.

      Maybe this is what the Judge was thinking all along, maybe he is looking out for Apple’s better image. Not really sure though.

  2. Dear bankrupt Co.:
    Wipe the sand out of your man panties, dry your crocodile tears, stand up straight, chin up and manfully own your incompetence.
    No one but you are to blame for your bankruptcy.

  3. If it was so bad for them surely any management worth their pay grade would have walked away from it, unless they needed it to survive in the first place of course because one presumes the management had failed to make it a very successful company in the first place and were desperate to do so now. Of course the blame game is usually the last refuge of bad management isn’t it especially when you have so conveniently shed so much of your own stock at the right moment shortly before it all blows up in your face. Sounds like amateur night to me.

    1. Exactly my thoughts. I mean what in the world are you doing signing a contract that you think you were pressured into or that you felt was unfair. I don’t think GT was taken advantage of by Apple, but for sake of argument, if they were trying to take advantage, why sign the contract? I don’t want Apple to give away trade secrets, but I wouldn’t mind hearing more details about this supposed bait and switch contract.

  4. I wonder if the investors feel the same way. Since the CEO was selling the stock and letting new people buy stock. That seems a lot like bait and switch to me. Just the switch part is they paid expecting a possible profit and they were selling knowing the investors would lose value and the CEO maintain profit until the chapter 11.

    1. Who is your favorite? Best performance? Biggest financial haul? Biggest audience conned? Best con movies of all times?

      Gosh your post is loaded with ripe creative fruits, they could make a TV series out of it.

      1. My favorite, because he was once an involuntary (on my part) business partner of mine is Richard Hirschfeld (and his partner, Robert Chastain). Hirschfeld was, for a time, Muhammad Ali’s attorney. He and Chastain were the one’s who secretly recorded meetings with Ferdinand Marcos about invading the Philippines to reclaim Marcos’ position and money. Hirschfeld once issued stock in a bank in VA without first going through the SEC. The bank then went belly up and nobody knows where several million in cash ended up.

        See:

        http://www.washingtonpost.com/wp-dyn/articles/A5384-2005Jan12.html

Add Your Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.