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AAPL Stock: 112.65 ( + 3.24 )

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Shareholders to refile AAPL options claims

updated 09:55 pm EST, Tue November 20, 2007

Refile AAPL options claims

While one shareholder lawsuit was already dropped, a California judge gave leave to attorneys to refile some of the claims, while dismissing others because of timeliness. In June 2006, Apple shareholders filed a lawsuit claiming that company directors and officers, including Chief Executive Steve Jobs, committed fraud when they backdated some awards made between 1997 and 2001 in order to maximize compensation payouts. According to the report, shareholders were seeking return of all proceeds from the backdated options. Following the ruling, lead plaintiffs' attorney Mark Molumphy said Tuesday he intends to refile the case focusing on issues the judge identified.

The Associated Press says that Judge Jeremy Fogel of the U.S. District Court for the Northern District of California ruled Monday that claims alleging fraud in some proxy statements were filed after the federal statute of limitations had expired, but gave plaintiffs an option to amend their complaint to change their arguments. In addition, Judge Fogel ruled that the lawsuit raised some valid arguments but said its claims against Jobs and other officers did not contain enough detail.

The previously dismissed shareholder lawsuit against Apple was seeking damages as a result of the Cupertino-based company's recent stock options scandal; the lawsuit, which was dismissed in a San Jose District court last week, charged that Apple's CEO Steve Jobs and other executives were overpaid via illegally backdated stock option grants. The judge dismissed the case because Apple's stock price did not drop after the backdating was revealed.




by MacNN Staff

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Comments

  1. smezjj

    Joined: Dec 1969

    0

    Bogus!

    Being a shareholder myself I think it's above and beyond greedy that other so called shareholders are throwing a hissy fit over this. I know for a fact, that myself, being a shareholder since 1996 have been more than compensated. What's with the ******* greed?!

  1. eldarkus

    Joined: Dec 1969

    0

    re: bogus

    SO TRUE!!! Is 1000% rise in stock price really not enough for these people??

  1. Feathers

    Joined: Dec 1969

    0

    doing the work...

    It's ludicrous that a Judge finds himself doing the work of the plaintiff's (bad) lawyer. He should have thrown out the case and left it to the lawyer to figure out how he might refile, rather than taking him by the hand and telling him! - "...Following the ruling, lead plaintiffs' attorney Mark Molumphy said Tuesday he intends to refile the case focusing on issues the judge identified...". Nice Judge, shame about the lawyer!

  1. ClevelandAdv

    Joined: Dec 1969

    0

    Stock value

    While backdating options is not something I want a company to do, Apple has clearly not been hurt by this. Some companies stock can be adversely affected as the backdated shares hit the open market and deflate the stock value.

    While Apple stock price may have had a fluctuation as a result of this action it would be hard to prove given the last 5 years stock returns.

    All this is doing is keeping some Lawyers employed.

  1. Paco01

    Joined: Dec 1969

    0

    Sue those shareholders!

    Due to their doing, Apple is getting even more bad publicity, which causes a drop in the shares. It's THEM who are making the share's value drop. So let's sue those greedy SoBs

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