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, Shareholders Settle in Stock Backdating Suit

Apple, Shareholders Settle in Stock Backdating Suit

by , 8:35 AM EDT, September 11th, 2008

Apple has agreed to a tentative settlement in a suit filed against the company by shareholders over improperly backdated stock option grants. If approved by the court, insurance companies representing the named defendants will cough up some US$14 million, $8.85 million of which will go to the plaintiff's attorneys, according to the Wall Street Journal.

The Apple executives named in the suit, including CEO Steve Jobs, have denied any wrong doing as part of the settlement agreement.

The law suit was filed after Apple revealed in 2006 that certain stock option grants issued between 1997 and 2002 were improperly backdated. The company's own investigation led to an $84 million financial results restatement for 1998 up through 2006.

None of the $14 million settlement will make it into the plaintiff's hands -- at least not directly. Since the case was a derivative action, the money will be turned over to Apple because shareholders were suing the executives on behalf of the company.

The settlement agreement is awaiting final court approval. A hearing is scheduled for October 31.

Recent TMO Headlines - Updated October 21st

Fri, 9:07 PM
Inside Apple Michigan Ave Store Opening in Chicago (Photos)
Fri, 8:07 PM
Get a Head Start on Your iPhone X Preorder on October 23
Fri, 7:12 PM
Apple Poaches Amazon Video Exec to Head International Development
Fri, 6:07 PM
Google Finds a Workaround for Apple's Intelligent Tracking Prevention
Fri, 3:52 PM
MOD-t (2nd Gen) 3D Printer on Kickstarter: $300 for a Self-Contained Consumer 3D Printer
Fri, 3:51 PM
iOS 11: How to Share Documents from the Files App
Fri, 3:12 PM
Our Top 5 Picks For Apple Watch Photography Apps
Fri, 2:41 PM
Apple Releases iOS 11.1 Developer Beta 4 with Bug Fixes
Fri, 2:32 PM
Use Your Apple Watch Digital Crown to Zoom Photos
Fri, 2:30 PM
Apple Fixes Several Bugs with watchOS 4.1 Developer Beta 4
Fri, 2:05 PM
Check Out This Cool Cyperpunk Horror Game Coming to Mac [Trailer]
Fri, 1:23 PM
Animoji Trademark Lawsuit, Apple's Sloppy UI Problem - TMO Daily Observations 2017-10-20
  • __________
  • Buy Stuff, Support TMO!
  • Podcast: Mac Geek Gab
  • Podcast: Apple Weekly Report
  • TMO on Twitter!