NYC Pensioners Pursue Apple Lawsuit

by , 11:20 AM EST, December 18th, 2007

Even though a federal Judge said the New York City Employee Retirement System's suit against Apple over improperly backdated stock option grants didn't hold water, the organization is moving forward with its case. The group filed a new version of its suit this week, and a hearing is scheduled in January to see if the case can move forward, according to the New York Sun.

The pension organization originally claimed that it had been hurt by a drop in stock value after Apple revealed in 2006 several incidents of improperly backdated stock option grants. The company's stock did drop about 14 percent after the news surfaced, but has since recovered and climbed about 500 percent compared to its value in 2005.

U.S. District Court Judge Jeremey Fogel ruled in November that the organization couldn't show it had been harmed since Apple's stock continued to climb after the backdating incidents were uncovered. He advised the group to consider re-filing their claims as part of a derivative suit.

Instead, the city pension group's board of trustees is moving forward with its own suit. The case could, however, derail once again if Judge Fogel rules that this new case doesn't have merit.

Apple is currently trading at US$183.36, down 1.04 (0.56%).

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