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Group Wants $7B USD From Apple, Steve Jobs, Executives Over Securities Fraud
Written by Daniel   
Wednesday, 02 July 2008 11:48

  Group of enraged shareholders file class action for backdating practices which sunk their shares' worth
Jason Mick (Blog) - July 2, 2008 11:45 AM

Angry investors have filed suit against Apple Inc., CEO Steve Jobs, former financial officer Fred D. Anderson, former general counsel Nancy R. Heinen, and several members of the company's board of directors on Friday. They allege that as a result of Apple's security fraud, they experienced massive losses on the stock market. They filed their case in U.S. District Court in San Jose, California.

The case is led by plaintiffs Martin Vogel and Kenneth Mahoney, who are seeking class action status. They stated that the aforementioned plaintiffs and board members William V. Campbell, Millard S. Drexler, Arthur D. Levinson, and Jerome B. York filed false financial statements, concealing millions in executive perks through backdated stock grants.

Apple already acknowledged that such practices did indeed occur. It said that there were "accounting irregularities" between 1997 and 2001, according to a 2006 report. It acknowledged that some of the funds in question went to Jobs, but "it was subsequently canceled and resulted in no financial gain to the CEO."

Apple has been subject to numerous government investigations due to its questionable accounting.

After Apple's admission in 2006, the stock price dropped 14 percent, a loss of over $7B USD to shareholders. The shareholders filing suit hope to regain this money from Apple.

The report in question came in December 2006. In it, Apple said that it would be forced to rework its financial results to include an additional non-cash stock-based compensation expense of $84 million after tax [$105 million pretax], including $4 million and $7 million in fiscal years 2006 and 2005, respectively. However, despite the ongoing irregularities, Apple said it found no irregular grants after Dec. 31, 2002....    [DailyTech...]   [Comments...]
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