Tag - Backdating
In spite of nearing the settlement of 19 cases, Apple and CEO Steve Jobs continue to face legal problems over backdating allegations, Bloomberg reports. An ongoing case is presently under seal at the Santa Clara County Superior Court, but the plaintiffs' lawyer, H. Adam Prussin, says he acting on behalf of shareholders, and using an approach "similar but not identical" to that of other lawsuits.
One chapter is coming to an end in ongoing legal battles Apple executives have been fighting over backdated stock options. Pending approval at a hearing in October, the defendants will settle 14 federal and 5 state cases for $14 million, plus attorneys' fees and other costs, creating a total settlement package worth nearly $23 million. The source of the trouble regards the misreporting of backdated options grants between 1997 and 2002, which has in various forms cost Apple at least $84 million.
The Securities and Exchange Commission has announced a settlement in the backdating allegations against Apple's former general counsel, Nancy Heinen. Heinen is the central figure in the backdating scandal that saw Apple accused of improper options payouts which led to numerous lawsuits from shareholders and has seen Apple CEO Steve Jobs subpoenaed to testify in court about the backdating. Heinen has agreed to pay $2.2 million in disgorgement, interest and penalties, and will also be barred from serving as an officer or director of any public company for five years. She has also been suspended from appearing or practicing as an attorney before the SEC for three years, but has not had to admit or deny the Commission's allegations.
The US Department of Justice will allegedly not pursue charges against Apple for the backdating of stocks for CEO Steve Jobs, as well as several other current and former employees. The Wall Street Journal writes that while neither the US attorney's office nor Apple itself would comment, lawyers for two of the accused confirm that they see "no other outcome", after a full review of the evidence against Jobs et al, and being notified that the criminal inquiry is over.
A lawsuit was brought against several key Apple executives on Friday, accusing CEO Steve Jobs and several others of fraud, in relation to the stock option backdating scandal in recent years. According to a filing with the US District Court in San Jose, Jobs stands with former financial officer Fred Anderson, as well as Nancy Heinen, William Campbel, Millard Drexler, Arthur Levinson, and Jerome York, in addition to the company itself.
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.
Shareholders suing Apple on the basis of its backdating scandal have refiled their case, expanding it considerably, Reuters says. US District Judge Jeremy Fogel stated, recently, that wrongdoings from before June 2001 could no longer be considered in the plaintiffs' case; the new suit though has grown from 86 pages to 153, and introduces four new allegations of options backdating by Apple management. With these included, the proceeds from the scandal are said to have been over $1 billion, the value of shares given to CEO Steve Jobs in exchange for options rated at just under the $1 billion mark.
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.