The Mac Observer

Skip navigational links

You're viewing an article in TMO's historic archive vault. Here, we've preserved the comments and how the site looked along with the article. Use this link to view the article on our current site:
Jobs, Apple Execs Hit with Fraud Suit

Jobs, Apple Execs Hit with Fraud Suit

by , 8:25 AM EDT, July 2nd, 2008

Apple CEO Steve Jobs along with current and former board members have been slapped with a class action law suit over their alleged involvement in the company's backdated stock options incidents. The suit was filed on June 28 and accuses the defendants of committing fraud by falsifying financial statements and concealing millions of dollars in executive compensation, according to Macworld UK.

Along with Mr. Jobs, the people named in the suit include former general counsel Nancy Heinen, former financial officer Fred Anderson, and board members William Campbell, Millard Drexler and Jerome B. York.

According to the plaintiffs, Martin Vogel and Kenneth Mahoney, Mr. Jobs and the other defendants "knew that options were not granted on the dates that were disclosed to shareholders and falsified the company's records to create the appearance of illegality, and thus bear direct responsibility for their actions."

Apple revealed in mid 2006 that it contracted an independent internal investigation that uncovered irregularities in some of the stock option grants issued to company executives between 1997 and 2001. The investigation cleared Mr. Jobs of any wrong doing, and a followup government investigation appeared to have backed up the findings.

Apple's disclosure led to several organizations and individuals claiming that the Cupertino company's actions cost shareholders millions. Others, however, feel the improperly backdated stock incidents ultimately did no harm since Apple's stock has continued to increase in value.

Assuming this class action lawsuit continues, it could mark the first time Mr. Jobs will be compelled to take the stand and publicly testify about his alleged involvement in the backdating scandal.

Recent Headlines - Updated January 25th

Sun,12:28 PM
MGG 537: The Moral to the Story is Never Fun
Sat,11:00 AM
MacPhun = The Easy Way to Improve Photos
10:30 AM
3 Rules for Better Candid iPhone Portraits
10:00 AM
7 Basic Tips for a Speedier Mac
Fri,7:22 PM
Go Behind the Scenes with Chinese Apple Store Artist (Video)
7:14 PM
Leatherman Wins At Watchbands with Leatherman Tread
6:47 PM
Travel Back to 2004 and Meet the ‘Palette Pad’
6:32 PM
PowerPot Cooking Pot and Charger: $99
6:28 PM
Apple Continues to Plunder Fashion Industry with Another Burberry Hire
5:00 PM
How Apple is Winning a Secret War
3:30 PM
The Mac Observer on an SE/30
2:12 PM
Mac Podcasters Quick Upgrade Guide for Audio Hijack 3
  • __________
  • Buy Stuff, Support TMO!
  • Podcast: Mac Geek Gab
  • Podcast: Apple Weekly Report
  • TMO on Twitter!