Apple probed by SEC

The Securities and Exchange Commission is investigating complaints of Apple not being forthcoming about Steve Jobs' health, according to a source for Bloomberg. The source -- who has refused to be identified, because the investigation is not public -- notes that no particular evidence prompted the investigation, but rather concerns that Apple may be misleading investors. Jobs recently described his illness as a "hormonal imbalance," but a little over a week later took a six-month leave of absence, only elaborating on his problems as "more complex" than he originally thought.

Neither Apple nor SEC representatives have been willing to comment on the existence of an investigation, but a former SEC laywer, Peter Henning, observes that if accusations are brought against Apple, the SEC will have to prove that Apple deliberately withheld information for its own benefit. Moreover, the body will have to show that an unambiguous diagnosis was available, rather than vague worries.

A corporate governance expert from Chadbourne & Parke, Edward Smith, comments that Apple may have technically met any investor obligations by declaring Jobs' absence. No specific details of a sickness are required, he suggests. "It's really an issue of the ability of the CEO during the period of his ill health to continue to advise and consult and manage the affairs of the company," says Smith. "Someone might be able to do that from a hospital bed for several weeks just as well as they may do it from the office."

by MacNN Staff