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Apple Settles Backdating Lawsuit for $20.5 Million

Apple has finally settled a four-year-old class-action lawsuit filed by the New York City Employees' Retirement System relating to backdating stock options. The company has been ordered to pay $14 million to shareholders, $2.5 million to fund corporate-governance programs at Columbia and Stanford and an additional $4 million in legal fees.

AppleInsider reports that in December 2000, Steve Jobs approved an options grant for Apple's top executives, but the grant wasn't finalized until January 31. When it was later revealed that the stock options were dated for January 17, Apple was accused of backdating the options.

This is not the first lawsuit relating to the backdating scheme, though. In 2008 Apple settled a similar suit relating to the matter and paid $14 million to Californian shareholders. The company was also subject to a 2007 SEC investigation that saw former CFO Fred Anderson and former general counsel Nancy Heinen charged. The two agreed to a settlement without admitting wrongdoing and were fined and ordered to repay millions of dollars in illegal gains.

Source: Apple Insider, Market Watch

  • everlast66
    After the settlement was agreed Jobs paid the $5 mil straight away from his pocket money :)
    Reply
  • applegetsmelaid
    Reply
  • jvc21
    dude, aren't Apple execs rich enough already?

    Is it really that important to get that extra million through backdating when you've already stashed tens of millions of dollars? >_
    Reply
  • oxxfatelostxxo
    Its apple being apple, no new news here. Move on
    Reply
  • rohitbaran
    All those lawsuits are just a small hole in Apple's pocket. With its loyal fanbase, it can always break rules and later pay a small (from its viewpoint) price and not break a sweat.
    Reply
  • rohitbaran
    everlast66After the settlement was agreed Jobs paid the $5 mil straight away from his pocket moneyReally, I think it might have caused terminating the free bumper program! Poor iCrap buyers! :D
    Reply
  • sparky_the_lab_rat
    I'm confused... the year 2000 execs essentially stole millions from the corporation, and in turn the year 2000 stockholders. As punishment, the corporation, basically the year 2010 stockholders, need to repay the year 2000 stockholders for their loss. Doesn't this just change who the victim is while the perps keep their looted money?
    Reply
  • MiamiU
    sparky_the_lab_ratI'm confused... the year 2000 execs essentially stole millions from the corporation, and in turn the year 2000 stockholders. As punishment, the corporation, basically the year 2010 stockholders, need to repay the year 2000 stockholders for their loss. Doesn't this just change who the victim is while the perps keep their looted money?welcome to capitalism
    Reply
  • dEAne
    It ruin the apple.
    Reply
  • alyoshka
    Now that's a 20 Million $ Apple...... :(
    Reply