Apple Settles the Derivative Litigation. But They Didn’t Use a Mac!

Apple shareholders were recently notified by this court document that the “Apple Derivative Litigation” has been settled.  A brief summary of this–which relates to backdating of Apple stock options–is as follows:

Apple Inc. and several of its officers and directors, including chief executive Steve Jobs, have agreed to settle a stock options backdating case for $14 million, plus attorney fees and costs.

According to court filings this month, Apple also agreed to pay $7.3 million in attorney fees and $300,000 to plaintiffs in the federal actions, as well as $1.2 million in attorney fees and $50,000 in expenses to plaintiffs in the state cases. In re Apple Computer Inc. Derivative Litigation, Master File No. C-06-04128 (N.D. Calif.).

The company also agreed to certain corporate governance changes.

On Monday, a federal judge preliminarily approved the settlement and set a final settlement hearing for Oct. 31.

To add injury to insult, however, the court document was distilled and put into Acrobat on Windows!

That’s almost worse than paying the $14M.

2 thoughts on “Apple Settles the Derivative Litigation. But They Didn’t Use a Mac!”

  1. I’m holding my copy of Master File No. C-06-04128-JF Apple Inc. Deriovative Legislation and am curious as to the outcome regarding me, a common small investor. My internet research tells me this case was settled almost a year ago and I have received nothing in the way of follow up or closure. I have received several of these over the years and have yet to receive either on any of them. For the shareholder who held these securities at the time in question and who may no longer hold them at the time of mailing these proposed actions, I must ask what is the purpose of this seemingly waste of my time and someone else’s paper and money? Is this just an exercise in lawyering where the defendants pay, the attorneys collect and the shareholder can’t even get a response as to how this affects him? I hope you read this far enough to see that I offer a thank you for your time and I would like some sort of response that I don’t need my own attorney to interpret. Again, thank you.

  2. Well, first of all, this isn’t an official Apple site, so I can’t give you any definitive information. You’ll need to talk to Apple about this.

    I just picked up on the story, and the fact that the pdf file was produced on a Windows machine.

    Sorry I couldn’t be of more help. This kind of class action settlement can produce some pretty paltry results, depending on the settlement, the nature of the litigation, the number of plaintiffs it’s spread on, and how much the attorneys take out in fees.

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