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:
Apple Sued Over Stock Option Irregularities

Apple Sued Over Stock Option Irregularities

by , 7:55 PM EDT, July 5th, 2006

Apple Computer announced Wednesday that the company has been hit with two law suits relating to the way the company has handled stock options. According to a statement issued by Apple, the suits include claims against both current and former officers and directors regarding the way options have been managed within the company.

One suit was filed in the United States District Court for the Northern District of California, a federal court, and the second was filed in the California Superior Court for Santa Clara County.

Apple announced on June 29th, 2006 that it had found irregularities in the stock option grants, and that it had hired independent counsel to investigate the matter further. The company also said it had informed the SEC of the situation.

After that announcement, American Technology Research analyst Shaw Wu and Piper Jaffray analyst Gene Munster issued research reports in which they both concluded that Apple's investigation into previously-issued stock grants is unlikely to have a major impact on the company.

While Apple's usual policy is to not comment on ongoing litigation, the company said in a statement that it is, "currently evaluating its response to the lawsuits."

Apple stock is trading lower today at US$57, a loss of $.095 (-1.64%) on moderate volume of 18.5 million shares trading hands.

*In the interest of full disclosure, the author holds a small share in AAPL stock that was not an influence in the creation of this article.  


If you are interested in Apple's stock, join our forum members in the Apple Finance Boards, a moderated forum for Apple Investors and people who are interested in Apple's financial dealings. For other stories regarding Apple's stock activity, visit our updated Apple Stock Watch Special Report.

Recent Headlines - Updated April 23rd

Wed, 7:31 PM
Apple’s Stock Jumps $40 (7.7%) in After-Hours Session
7:11 PM
China Earns Apple $10B, Ready for More
6:57 PM
Apple’s Tim Cook Explains His Enthusiasm for iPad
5:41 PM
Burberry’s Angela Ahrendts Starts as Apple Retail Boss Next Week
5:05 PM
AAPL Expands Dividend Program to $130B, Announces 7-to-1 Stock Split
4:37 PM
Apple Beats the Street, Reports $45.6 Billion Revenue and $11.62 EPS [Update]
2:43 PM
The 6 Piece Essential iPhoneography Lens Kit for $69
1:55 PM
Why 4K Streaming Isn’t Really 4K
1:40 PM
The Golden Age of Mac Upgrades is (Once Again) Upon Us
1:29 PM
Apple Debuts ‘Powerful’ Spot Featuring iPhone 5s
1:05 PM
Nanotips Liquid Turns Any Gloves into Touchscreen Gloves
10:28 AM
Sponsor: Other World Computing (OWC)
  • __________
  • Buy Stuff, Support TMO!
  • Podcast: Mac Geek Gab
  • Podcast: Apple Weekly Report
  • TMO on Twitter!