This is a securities fraud class action law suit against Apple Inc, and certain of its officers and directors alleging Apple.
The action alleges that Apple made false and misleading statements and omissions concerning Apple's improper and undisclosed practice of backdating options conferred on certain executives which made it appear that such options were issued on dates when the market price of Apple stock was higher than actual market price on the actual grant dates. This improper backdating masked the virtually instant profits the option recipients obtained.
Under generally accepted accounting principles, these profits were required to be recognized as an expense in the Company's financial statements for the appropriate period, but were not. Thus, the Company's financial statements in its Form 10-K filing for the fiscal year 2005 and interim financial statements for 2005 and 2006 were materially false and misleading. In addition, the Company's Proxy Statement for its annual shareholder meeting held in 2006 was materially false and misleading because it contained statements concealing Apple's practice of backdating stock options. The Complaint further alleges that as a result of defendants' actions, plaintiffs and the Class were damaged.
Name (Stock Symbol)
Apple Inc. (AAPL)
Apple Inc. designs, manufactures and sells consumer electronics including computers, cell phones. It also owns and operates Itunes, the largest website to download and manage music.
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