Criminal probe of Jobs concludes, but 'legal shadow' still hangs over him, Apple
TweetFollow Us on Twitter

Criminal probe of Jobs concludes, but 'legal shadow' still hangs over him, Apple

Although Jobs isn't being indicted for his role in Apple's backdating of stock options grants, he will likely be called to the stand in at least two other cases, and there could be trouble over stock options at Pixar Animation Studios, where Jobs was also CEO before its buyout by Walt Disney, the article adds. Pixar has said its former chief financial officer could face civil charges from securities regulators.

In February, The Wall Street Journal reported that Jobs helped negotiate an employment contract with top film director John Lasseter and Pixar that included a large stock-options grant with an “especially well-timed date." The options grant carried the lowest share price of the previous year -- on a date more than three months before the employment contract was actually signed, the report said. Jobs, then Pixar’s chairman and chief executive, signed the agreement on behalf of Pixar, though it’s unclear if he played a role in selecting the date, according to the WSJ.

However, in March Disney said that that while stock-option awards to some employees of Pixar Animation Studios were backdated, no one associated with Disney today, including board member Jobs, deliberately did anything wrong. Federal prosecutors and the Securities and Exchange Commission are looking into the backdated grants made to key Pixar employees several times since 1997, but before Disney bought Pixar in 2006.

The biggest options-related issue still looming over Apple is a shareholder lawsuit filed in U.S. District Court in San Jose accusing the company and Jobs of defrauding investors with the company's backdating practices, says the AP. Last December, shareholders suing officers and directors of Apple refiled their claims to address a judge’s ruling that some fraud complaints were too old and that the lawsuit contained scant details about wrongdoing by the company’s top officials.

The revised complaint tallied up proceeds of the exercise by Apple executives of the backdated options at more than US$1 billion and places the value of shares held by Jobs that were received in exchange for backdated options at nearly $1 billion. The amended lawsuit also tied the Apple board closer to the backdating of shares to executives by alleging that the full board acted as the company’s compensation committee when it signed off on options with false grant dates. Most shareholder lawsuits are settled out of court, but Apple could be forced to cough up millions in penalties if a jury finds it liable, the AP adds.

Jobs will also probably have to testify in the Securities and Exchange Commission's civil trial of Apple's former general counsel, Nancy Heinen. The SEC sued Heinen in April, accusing her of backdating a 7.5 million-share option grant to Jobs in 2001 and earlier grants to his executive team. Heinen, 50, resigned in May 2006 without explanation, two months before Apple disclosed an investigation into option backdating. The internal inquiry led the company to record $84 million in charges to correct its accounting.

The Heinen case carries less risk to Wall Street's perception of Apple than the shareholder lawsuit, but it "could provide illuminating details about Jobs' role in the options scandal," the AP says. The article adds that Jobs' position won't likely be threatened by any testimony he might give in either case as Apple has already acknowledged that Jobs was aware of backdating, but says he didn't benefit financially from it and didn't understand the accounting implications.

"Macsimum News" is a proud supporter of [url=]Planet Gumbo[/url], which feeds the hungry. We urge you to help them in their efforts.

Apple Inc.
Google Inc.
Microsoft Corporation
MacNews Search:
Community Search:
view counter

view counter
view counter
view counter
view counter
view counter
view counter

Here Are Our Top 5 App Picks to Make the...
| Read more »
GoodReader is Currently on Sale
Good.iWare is offering GoodReader for 60% off for a limited time. In honor to teacher appreciation day they have added GoodReader to apples "Tools for Teachers" promotion. [Read more] | Read more »
Grim Fandango Remastered (Games)
Grim Fandango Remastered 1.0.0 Device: iOS iPhone Category: Games Price: $9.99, Version: 1.0.0 (iTunes) Description: | Read more »
This Week at 148Apps: April 27-May 1, 20...
May Merriment at 148Apps How do you know what apps are worth your time and money? Just look to the review team at 148Apps. We sort through the chaos and find the apps you're looking for. The ones we love become Editor’s Choice, standing out above the many good apps and games with something just a little bit more to offer. Take a look at what we've... | Read more »
The Ensign, Prequel to A Dark Room, is C...
Amirali Rajan's The Ensign is the prequel to the text-based adventure A Dark Room, and it's gone free for a couple of days. [Read more] | Read more »
Streamline - calendar (Productivity)
Streamline - calendar 1.0 Device: iOS iPhone Category: Productivity Price: $3.99, Version: 1.0 (iTunes) Description: Do you dare to break conventions?Streamline is the first real evolution from the paper diary. It is a patented and unique calendar app that redefines how you see and plan your time! | Read more »
Plants vs. Zombies Celebrates its Sixth...
It's pretty wild to think that the  Plants vs. Zombies  series has been around for six years already. To celebrate this mildly unconventional milestone, Popcap is giving players some free stuff in Plants vs. Zombies 2. Because they got the whole "birthday gifts" thing backwards. I blame the zombies. [Read more] | Read more »
Dropbox Adds MS Office Documents and Mor...
Dropbox, the popular file storage solution, has announced an update that adds three new features for you to enjoy. [Read more] | Read more »
The All-Consuming Snake is Back and Hung...
Taneli Armanto, the designer of Nokia 6110 Snake, is back to work. Together with Rumilus Design, he's working on a new Snake game titled Snake Rewind. [Read more] | Read more »
WAVE Personal Calendar Now Connects You...
WAVE Calendar, by e-sites, has added an interesting new feature: real life personal assistants. The e-sites webpage has been redesigned so personal assistants can apply to work directly with WAVE. [Read more] | Read more »
All contents are Copyright 1984-2010 by Xplain Corporation. All rights reserved. Theme designed by Icreon.