Report: Jobs' health could lead to investor lawsuits
updated 10:45 pm EST, Wed January 14, 2009
Jobs health lawsuits
In the wake of Steve Jobs' announcement that he will take a medical leave of absence until June, legal experts already anticipate a number of lawsuits aimed at Apple, according to Reuters. Investors have been frustrated with the company's lack of disclosure and vague statements regarding the matter. Jobs has quickly gone from supposedly experiencing dietary issues to his current status that requires 6 months of down-time for to deal with problems that he considers "more complex than I originally thought."
The company has been accused of hiding the reality of the CEO's condition, denying any reason concern despite his clearly gaunt appearance that has not shown any sign of improvement through the end of last year. After undergoing surgery for pancreatic cancer in 2004, the subject was largely dismissed until the iPhone 3G launch in June of 2008. His apparent loss of weight ignited speculation that the cancer had returned, although the company cited a "common bug."
As confidence fell amongst groups of investors, Jobs initially refused to provide more details and considered his health "a private matter." Sources later reported that he underwent a second surgery to address the weight loss. After Bloomberg accidentally published his obituary template, he went on stage at an iPod event and tried to bring a humorous tone to the mistake.
AAPL stock is particularly volatile to the speculation, wavering up and down with the rumors and subsequent denials. An October story on CNN's iReport.com site falsely claimed that he had been rushed to the hospital because of a heart attack. Despite the site being open for anyone to post stories without any fact-checking, the company's market value was driven down $4.8 billion in the first hour of trading.
Jobs finally publicly acknowledged a hormonal imbalance last week, but claimed that the remedy was "relatively simple and straightforward." The announcement was released before the Macworld conference. Whether he was gently leading up to bigger news, or truly ignorant of the severity, remains unknown. On Wednesday, however, he admitted that the problems were more complex than he originally thought.
Analysts consider the value of Apple's stock to be linked with its CEO, to a deeper degree than many other companies would experience. The lawsuits will likely stem from investors that believe the company intentionally kept his health a secret in an attempt to keep the stock prices artificially high.
Legally, the debate falls into a gray area, somewhere in between the rights to privacy and the obligation to disclose information that would have a serious effect on investors' perceived risk. "It is extremely difficult because it is the most private part of his life," said Steve Williams, an attorney for Cotchett Pitre & McCarthy. "At the same time, Apple is Steve Jobs."
Joseph Grundfest, former Commissioner of the SEC, believes that Apple will not be held accountable unless people within the company made trades based on the knowledge before it was publicly announced. He also considered, however, that the company could have intentionally understated the illness. "If the company misled me by giving me the impression that (Jobs) was going to continue to lead the company, that could be an actionable statement," he said.
The plaintiffs' attorneys could still have a difficult time proving that the severity of Jobs' health condition had been fully known for an extended length of time. "It is not the same as looking at a piece of financial information at the end of the month," said an attorney, who remained anonymous because of his firm's current involvement in separate proceedings with Apple.










Vegans!!
01/14, 11:20pm reply
All he needs is a good medium-rare steak!
MyRightEye
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Joined: Apr 2008
Losers
01/14, 11:39pm reply
This has been a known issue for a year at least. If you didn't like the way Apple and Jobs was handling it, you shouldn't have invested in AAPL. If you did then it's caveat emptor.
Get well soon, Mr. Jobs.
malax
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Joined: Aug 2006
Allow me...
01/14, 11:44pm reply
....to personally slap the first person that feels it necessary to sue over this.....
Roehlstation
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Joined: Aug 2001
Lawsuits for what?
01/15, 12:20am reply
Have people not heard of HIPPA compliance? Health is a private matter of an individual. Even the highest authorities cannot ask Apple to reveal the health status of its employees unless it can be proven beyond doubt that the health of the CEO was known to someone else in Apple and transactions were made prior to this which profited the company. Jobs being and employee is bound by the same rules.
I wish Mr. Jobs the best for his health and look forward to seeing him back in June. Good luck Steve.
macnixer
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Joined: Mar 2006
Apple is Apple
01/15, 12:29am (1 reply) reply
"steak" lol
Apple is only Steve Jobs until it isn't. Then it carries on his obsessive quest for design quality through new personalities. Munster put it well on CNBC-- paraphrasing-- Tim Cook and Jonathan Ive equal SJ, without RDF.
Let's give Steve a nice long rest. H deserves it.
Loren
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Joined: Mar 2001
Best wishes to Jobs
01/15, 12:52am reply
Steve has brought us a ton of good. Apple will go along with great ideas with or without him. And in fact it may again be a good time for some ideas that are outside of Jobs. I think the stock is down b/c of uncertainty. That will take a while to get back. Lawsuits on this are pretty silly. If the stock price goes down over this, it ought to come back up again too over the reality of Apple's ideas with and without Jobs.
JackWebb
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Joined: Aug 2007
Get well soon Steve!
01/15, 01:04am reply
Please get well soon Steve!
minimansion
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Joined: Aug 2001
Talking about over blown!
01/15, 02:06am reply
Oh come on now. What a bunch of hockey puck!! Talking about taking things way out of context. He's taking some sick leave, that's all. Lawsuits about what? The board seems to know what's going on and there fine with it. Leave the man alone, and stop speculating on hockey puck, B.S.!!!Get well Steve Jobs and see you back in late June early July.
B9bot
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Get well soon Steve!
01/15, 02:35am reply
See you in June.
Mac-a-Bayan
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Joined: Jul 2004
Lol
01/15, 02:42am reply
lol, man how funny are the people wishing Steve bj 'well.'
I'm sure if you were seriously sick he would do the same
hahahahahahaha.
Guest
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Joined: Nov 1999