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=http://planetgumbo.org/]Planet Gumbo[/url], which feeds the hungry. We urge you to help them in their efforts.

 
AAPL
$113.99
Apple Inc.
+1.98
GOOG
$534.03
Google Inc.
+5.26
MSFT
$47.88
Microsoft Corpora
-0.26
MacNews Search:
Community Search:

Latest Forum Discussions

See All
view counter

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

Forget the Gloves – It’s a Cage Match in...
Forget the Gloves – It’s a Cage Match in Real Boxing’s Underground Update Posted by Jessica Fisher on December 23rd, 2014 [ permalink ] | Read more »
Who Wore it Best? Best of 2014
It’s the end of the year, so it’s time for some arbitrary internet awards! In this wrap-up episode of Who Wore it Best? we present our winners for the best, worst, and flat-out weirdest cloned games that graced the App Store in 2014. [ Who Wore it Best? Best of 2014 is a post from 148Apps ] | Read more »
Now You Can Explore Mayan Temples in Ass...
Now You Can Explore Mayan Temples in Assassin’s Creed Pirates’ Newest Update Posted by Jessica Fisher on December 23rd, 2014 [ permalink ] | Read more »
Soft Design aims to do free-to-play righ...
They say a team is only as big as its fans and that’s also certainly the case with video games, judging from the sales certain AAA ‘heavyweights’ get year-after-year. Soft Design took that principle as a core design philosophy and worked closely with their brand new game’s growing community. Money Mine: Clicker is the game and a full reset has... | Read more »
Bogga Christmas Tree
Bogga Christmas Tree By Amy Solomon on December 23rd, 2014 Our Rating: Universal App - Designed for iPhone and iPad Bogga Christmas Tree allows young children to trim a tree, any time or place.   | Read more »
Opera Coast 4.0 Launches on iOS with 4 N...
Opera Coast 4.0 Launches on iOS with 4 New Features Posted by Jessica Fisher on December 23rd, 2014 [ permalink ] Universal App - Designed for iPhone and iPad | Read more »
Cricket Kids: Christmas Presents
Cricket Kids: Christmas Presents By Amy Solomon on December 23rd, 2014 Our Rating: Universal App - Designed for iPhone and iPad Cricket Kids: Christmas Presents allows children to play with digital toys opened for the Christmas holiday.   | Read more »
Lara Croft & Tomb Raider Mobile Bund...
Lara Croft & Tomb Raider Mobile Bundle – Only $4.99 Posted by Jessica Fisher on December 23rd, 2014 [ permalink ] Lara Croft is coming to you in | Read more »
SimCity BuildIt Review
SimCity BuildIt Review By Nadia Oxford on December 23rd, 2014 Our Rating: :: BUILDING AN OK TOMORROWUniversal App - Designed for iPhone and iPad SimCity BuildIt is a competent city-building game, but its free-to-play trappings are borderline monstrous.   Developer: EA | Read more »
SimCity Buildit – Tips, Tricks, and Stra...
Hello, Budding Mayors Want to know what we made of all this upgrading and inevitable waiting? Check out our SimCity BuildIt review! SimCity BuildIt is a city-building game from EA. Your job as mayor is to build houses for people to live in, industry and utilities to serve them, and to try and make sure the good people of your city don’t get mixed... | Read more »
All contents are Copyright 1984-2010 by Xplain Corporation. All rights reserved. Theme designed by Icreon.