Although the bulk of the legal maneuverings surrounding Apple‘s back-dating of stock options given to executives is behind the company—including former Apple attorney Nancy Heinen settling with the SEC last month for $2.2 million—a few final bricks need to be mortared into place before the affair can safely be sealed off in the cellar. Federal judge Jeremy Fogel has given preliminary approval to a $14 million settlement between Apple CEO Steve Jobs and other current and former Apple executives and directors to settle shareholder claims the officers breached fiduciary duty in granting backdated options and failing to properly account for them in the company’s financial.
The settlement agreement covers almost two dozen shareholder lawsuits, and has Apple’s liability insurer paying the company some $14 million, along with some $9 million in billing and fees to lawyers working on the consolidated cases. Under the settlement, Apple also agrees to implement corporate governance change and the processes under which it awards stock options and other equity grants.
Following an internal investigation, Apple restated revenue related to grants made from 1997 to 2001, resulting in an $84 million charge, along with the departure of CFO Fred Anderson and counsel Nancy Heinen, followed by charges from the SEC.
Judge Fogel has set a hearing date for October 31 to finalize the settlement.
Editors' Recommendations
- Google just settled a $5B privacy suit involving Chrome browser
- AI could replace around 7,800 jobs at IBM as part of a hiring pause
- Apple will pay $50M to settle the butterfly keyboard fiasco
- Have MacBook keyboard problems? Apple may owe you some money
- Why I still use Microsoft’s Office suite instead of Google’s free options
