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Steve Jobs pays off shareholder lawsuit

by on11 September 2008

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Sorry for stealing your cash


Apple CEO Steve Jobs and several other senior executives and board members have settled a lawsuit that claimed the company was damaged by them giving themselves illegal stock option awards.

Insurers representing Apple's directors and officers will have to pay Apple $14 million which is designed to repair damage to Apple that the shareholders claimed the company suffered because of the stock options tampering.

Apple will also have to pay $8.5 million in plaintiffs' attorneys' fees and $350,000 in expenses. Apple's board must also adopt several reforms related to stock option grants.

The settlement cleans up a series of state and federal derivative lawsuits against Apple related to the company's 2006 disclosure that there were accounting problems with some of its stock option
awards.

It cost Apple $84 million after it acknowledged it had backdated 6,428 grants between 1997 and 2002. One of those grants was an award of 7.5 million options to Jobs, which he later surrendered in exchange for millions of shares of stock.

Jobs was later cleared in an internal inquiry of any wrongdoing.
Last modified on 12 September 2008
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