Home › News › Apple
Apple to settle backdating lawsuit for $14 million
It looks Apple’s stock options backdating scandal might finally be over, with CEO Steve Jobs and other executive having agreed to a $14 million settlement pending the court’s final approval on October 31. The settlement comes close to two years after the company took an $84 million charge for improperly booked stock options.
Apple has also agreed to reform parts of its options plan, but in the end all of this basically comes to the $14 million being paid by Apple’s liability insurer back to the company itself – not the shareholders –given that this was a “derivative” lawsuit that sought compensation on behalf of the company. Apple, however, must pay around $8.5 million in plaintiffs' attorneys' fees and $350,000 in expenses. While shareholders do not financially benefit from the suit, they benefit to some extent by restoring Apple’s good name and forcing changes that otherwise might not have happened inside the firm.
Apple has also agreed to reform parts of its options plan, but in the end all of this basically comes to the $14 million being paid by Apple’s liability insurer back to the company itself – not the shareholders –given that this was a “derivative” lawsuit that sought compensation on behalf of the company. Apple, however, must pay around $8.5 million in plaintiffs' attorneys' fees and $350,000 in expenses. While shareholders do not financially benefit from the suit, they benefit to some extent by restoring Apple’s good name and forcing changes that otherwise might not have happened inside the firm.
Related Stories
Most Popular
| Trending | Featured |
-
iOS 5.1.1 untethered jailbreak tool released, supports 4S, iPad 3
-
After five days, Facebook ranks as worst IPO flop of the decade
-
Rumor: Windows 8 RC will launch June 1, will ship with Adobe Flash
-
Rumor: AMD "Piledriver" FX CPU production to begin Q3 2012
-
Diablo III becomes the fastest-selling PC game in history
Editors' Case Picks
Subscribe to TechSpot
Get free exclusive content, learn about new features and tech breaking news.