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July 2, 2008

legal

Apple, Jobs, executives and board sued for options backdating

Posted Jul. 2, ’08, 5:44 AM PT by Aaron Freedman
Category | Legal
Remember that whole Apple stock options backdating scandal? It’s been close to a year since we last covered it, but now it’s back in the news, this time in the form of a full-fledged lawsuit filed against Apple.

Plaintiffs Martin Vogel and Kenneth Mahoney sued Apple, Steve Jobs, former CFO Fred D. Andserson, former general counsel Nancy R. Heinen, and board members William V. Campbell, Millard S. Drexler, Arthur D. Levinson, and Jerome B. York for securities fraud over concealing the granting of millions of backdated stock options to Apple executives.

In their 105-page complaint, Vogel and Mahoney claimed that all the Apple executives and board members they sued knew that the options backdating was going on, especially Steve Jobs, who got an “instant paper profit” of $20,525,000 on December 18, 2001 when he received 7.5 million Apple shares backdated to October 19, 2001, and $83,762,000 from a 10 million-share grant in January 2000.

With this new suit coming out into the open, it seems that the options backdating scandal has no intentions of dying, which should make for an interesting Q3 earnings call.

1 Comments

Anonymous said:

Must have been some lawyers who did not get any money out of this yet

July 2, 2008 9:21 AM

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