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Jobs, other Apple officials summoned in lawsuit

updated 03:05 pm EDT, Thu April 24, 2008

Jobs summoned in lawsuit

CEO Steve Jobs is among a number of Apple officials that have been ordered to appear in court regarding a new lawsuit, reports say. The summons were issued by the Superior Court of California in Santa Clara, and are connected to a suit from the Boston Retirement Board, alleging that over $105 million was lost on backdated stock options granted to Jobs. Backdating involves picking a favorable stock value from a time before options are actually granted; though this is technically legal, it can harm other shareholders and the rest of a company, and must be declared with the Securities and Exchange Commission. Apple leadership is accused of failing its duty in this regard.

The BRB says it has discovered specific evidence of wrongdoing gleaned from records, but claims it is unable to provide this information until the court rules on how it should be handled, given confidential facts. It may be added later to a sealed or amended version of the complaint. For now, the Board will only say it confirms "that all of Apple's directors were aware of and participated in the backdating scheme." Past lawsuits over the backdating scandal have typically been dismissed due to lack of proof.

Recipients of improperly backdated stocks should be forced to surrender illegal profits, the BRB says, and the directors who granted them should be held individually liable. Other people summoned in the suit include William Campbell, Millard Drexler, Arthur Levinson, Jerome York, Gareth Chang, Edgar Wollard, Fred Anderson and Nancy Heinen.




by MacNN Staff

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  1. njfuzzy

    Joined: Dec 1969

    0

    roll-over ads

    Annoyed by the adds that appear when you accidentally pass your mouse over the double-underlined text? I recommend filling out the feedback form on the contact page of MacNN, with something like the following:

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  1. climacs

    Joined: Dec 1969

    0

    motion seconded

    f****** annoying little buggers. I most certainly NEVER click thru those ads, I swat them away like mosquitos.

  1. dampeoples

    Joined: Dec 1969

    0

    Hit 'em where it hurts

    And use AdBlock or similar

  1. Zaren

    Joined: Dec 1969

    0

    Bloody in-text ads

    They *do* offer an option to disable the ads, after you load up one of the ads. Of course, it only works on one site at a time, and they'll randomly re-enable the ads on you.

  1. dotcom

    Joined: Dec 1969

    0

    On topic

    As an Apple shareholder I wish I could bring a class action lawsuit against these groups bringing their suits against Apple over the backdating "scandal". To suggest that Steve Jobs has had any effect other than a positive one on aapl share prices is simply being blind to the facts (perhaps by greed). I first bought aapl back around the time Jobs returned to Apple and shares were trading at about $14. Today? Just shy of $170 per share, and there was a stock split in the middle of that climb, meaning the Jobs has overseen aapl climb from an equivalent of $7 per share to $170 (ignoring the flirt of $200 several months ago). How does that equal harm to anybody holding Apple stock?

  1. lordarka

    Joined: Dec 1969

    0

    dotcom: that depends

    Harm incurred depends on when investors joined. If you hopped on the bandwagon back when the stock was in the $190's, you may have suffered a harm at least partially attributable to the defendants in suit. In your shoes, even, you've still suffered a possible harm, in that your stock may not be as highly valued as it might be but for the shady conduct of Apple's executives. I understand that you are happy with Steve Jobs' performance... I think most of us shareholders are. But the mere fact that Apple stock has delivered substantial return on investment since Steve took the helm doesn't mean he and his executive board shouldn't be held accountable for potential wrongdoing, provided that there was any.

  1. dliup

    Joined: Dec 1969

    0

    sign me up...

    Hey dotcom,

    Sign me up with dotcom's idea. These idiots are trying to bite the hand that feeds them.

    There should be a clause that says anyone demonstrating idiotic behavior should forfeit their stock holdings in Apple (and should not invest in general).

  1. The Wolf

    Joined: Dec 1969

    0

    lesser of two evils...

    On the one hand, it does seem unfair that they can use backdating when they exercise of their options. On the other hand, I *guess* I would rather they do that than trade shares based on inside info.

  1. elroth

    Joined: Dec 1969

    0

    re: lordarka

    Not true. The backdating became public when the stock was around $80, I believe - it went down a bit temporarily, but soon more than doubled. Probably the only thing they can argue is that some of the Apple officers got more money than they would have if the stock options were handled properly (maybe that's the $105 million figure).

  1. testudo

    Joined: Dec 1969

    0

    Re: roll over ads

    Block intellitxt, kontera.com, and vibrantmedia.com (Vibrant media? Really? More like Extremely Annoying Media) in adblock or Pithhelmet or Privoxy. Bingo, never seen again.

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