Apple options-backdating shareholder lawsuit dismissed

by Nilay Patel posted Nov 15th 2007 at 3:20PM

The twisted tale of Apple's backdated stock options drew closer to its final chapter today, with a California judge dismissing the shareholder class-action lawsuit against the company over the allegedly improper accounting procedures. Unlike the SEC, which essentially cleared Apple, the court didn't rule one way or another on the actual backdating issue, but instead found that since Apple's stock price didn't suffer, there was no injury to the shareholders, and thus no basis for the lawsuit. That ruling leaves the door open for a second, amended lawsuit to be filed as part of another proceeding, but for right now, it looks like the only real fallout from the whole mess was the birth of Fake Steve -- and for that, we're not sorry one whit.

[Via AppleInsider]

Filed under: Misc. Gadgets

Tags: apple, apple stock options, AppleStockOptions, stock options, StockOptions

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Low Ranked

cpostudios @ Nov 15th 2007 3:24PM

First?

Neutral

James Ollier @ Nov 15th 2007 3:26PM

Hey!! I'm first reply to a complete tosser!

Neutral

Scott Culp @ Nov 15th 2007 3:29PM

Boy, Stevie is really starting to look rough. You'd think with all of his dough he could afford a decent stylist and maybe shave that rat's nest off of his face. It really ages the guy.

Neutral

SubGenius @ Nov 15th 2007 3:34PM

Thats an old picture, he has been keeping it scruffy but short lately.
How many billionaires wear ripped jeans to work?
How many billionaires work?

Neutral

TaleOf2Steves @ Nov 15th 2007 4:37PM

ummm, have you seen Steve Balmer lately? He's even more of a billionaire. At least Jobs seems fit & controls his sweating, and doesn't act like he has tourettes! If I had to look like either, there wouldn't be much of a choice.

Neutral

NG @ Nov 15th 2007 4:55PM

all of the billionaires still work

Neutral

o29 @ Nov 15th 2007 6:02PM

Perhaps more importantly, there's no turtleneck!?!

Neutral

D.L. @ Nov 15th 2007 3:33PM

So, it's legal to cheat and lie as long as you do it on the up side of the bubble? I guess that's what the Enron guys did wrong.

Neutral

Josh L @ Nov 15th 2007 4:17PM

D.L., I'd like you to meet my friend, American Legal System.

Neutral

D.L. @ Nov 15th 2007 4:22PM

If you don't mind me saying, your 'friend' is a bit insane.

Neutral

rip @ Nov 15th 2007 4:39PM

What bubble would that be? The one where Apple went from zero iPods to 150 million? The one where Apple increased Mac market share from 2.5% to ~6%? The one where Apple increased revenues from a few billion a year to a few billion a month?

Or are you suggesting that Apple is committing fraud and cooking the books like Enron.

Reality check: Apple largely sells physical products and has physical inventory, unlike Enron which was largely involved in derivatives commodity trading. What that means is that all you have to do is look around and see if Apple stores are crowded and moving merchandise and if you see more people with Apple products to check if Apple is making more money. About the only thing you can do is play with your AR, and that is largely legal.

The basis of this suit was that shareholders/investors were harmed. Considering that Apple share price has increased about 1000% in the past few years, due to great management, it's hard to argue they were harmed.

Please get a clue before you post.

Neutral

Chris @ Nov 15th 2007 6:55PM

rip - Apple did not account for backdated stock options. It's fraud and it is cooking the books. It is different from Enron in as much as it did not sink the company. But it is still wrong. That is what DL was saying. Unless you think that fraud is okay as long as nobody gets hurt.

By the way, there are quite a few ways for a company like Apple to 'cook the books' other than playing with A/R.

Neutral