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 Appleis investigation into previously-issued stock grants is unlikely to have a major impact on the company.
While Appleis 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.