Apple Shareholders to Refile Stock Options Case

November 20th, 2007 at 2:00 PM - News by Jeff Gamet

Apple shareholders plan to refile their case against the Cupertino company over improperly backdated stock options. Judge Jeremy Fogel ruled that some of the fraud claims had been filed after the federal statute of limitations had expired and that the plaintiffs did not present enough detail, according to the Associated Press.

The judge did leave an opening for the shareholders to amend their complaint with different arguments and additional information, which is exactly what they plan to do. Shareholder lead attorney Mark Molumphy commented "The discovery we have so far has made the case stronger."

A group of Apple shareholders filed the suit against Apple in 2006 after the company revealed that stock option grants had been improperly backdated on several occasions. The shareholders filed their case against the company, the board of directors and the officers, alleging they committed fraud to enhance the value of the share grants.

Even though Apple commissioned an independent investigation into the incidents -- and ultimately cleared CEO Steve Jobs of any wrong doing -- the group included Mr. Jobs in its lawsuit.

Last week, Judge Fogel dismissed a separate case against Apple that had been filed by the New York City Employeesi Retirement System. In that case, the plaintiffs alleged that Apple diluted the value of its stock through the improperly backdated option grants.

Apple has not commented on the pending litigation.