NYC pension fund lawsuit

A group managing the pension fund for New York City's public servants is continuing a lawsuit against Apple, despite a ruling suggesting it should not, reports say. In November, Judge Jeremy Fogel of the US District Court in San Jose determined that the New York City Employees' Retirement System (NYCERS) had no basis for suing Apple over stock backdating, as it hadn't actually suffered damages. Fogel did recommend joining a derivative suit that would not have produced payouts, but NYCERS has instead chosen to re-file a second version of the suit.

Exactly what changes may have been made are unknown, but NYCERS is still accusing Apple of damages triggered by a 14 percent drop in its stock price, a result of the backdating scandal revealed in 2006. Fogel is said to have dismissed the case in part because Apple value has risen 500 percent since 2005, easily negating any short-term losses. A hearing scheduled for January will decide whether or not NYCERS can continue with its second lawsuit, which may affect the pension plan's health if no money is awarded.

by MacNN Staff