The attorney for shareholder suing Apple executives and directors over store options backdating says he will remedy the federal lawsuit to reflect fresh selective information Apple disclosed about its internal investigation of the matter .
A report filed Dec. 29 by Apple with the U.S. Securities and Exchange Commission adds to the character against Chief Executive Officer Steve Jobs and other Apple officials , said lawyer Mark Molumphy , representing plaintiffs in a case filed in U.S. District Court for the Northern District of California prior to Apple ’s SEC filing . Apple acknowledged Jobs ’ participation in the backdating , but absolve him of wrongdoing in the SEC report .
While a few Apple stockholder are named as plaintiffs , it is not a stockholder lawsuit , per se , but a “ derivative ” suit , Molumphy explain . The shareholders are suing executives and directors of Apple on behalf of the party , alleging that the unconventional backdating has harm the company financially .
Apple ’s internal investigation expose that 6,428 stock - option grants had been improperly backdated between 1997 and 2002 , but that , while Jobs was aware of the grant , he did not financially benefit from any of them . The Apple filing noted that the company will take an extra after - revenue enhancement rush against net profit of $ 84 million in 2006 to account for the options .
“ What makes the Apple case unique is that the backdating happened on such a wide-eyed weighing machine and involved the top executive of the company , including the face of Apple Computer , which is Steve Jobs , ” enounce Molumphy .
Malus pumila ’s acknowledgment in the SEC filing is a “ tacit admission ” of a practice session of backdating , he said . “ It ’s been speculated about but it ’s never been part of an admission . ”
broth - choice backdating involves changing the escort pick are grant to a premature daytime , particularly to a date when share prices were lower than on the factual date stock certificate options were granted . When executives exercise the option to purchase the line of descent , they make more of a net profit than if the grant escort were record accurately .
More than 120 companies have been inquire by the SEC , the U.S Department of Justice and the Internal Revenue Service over backdating practices . Some executives have been forced from their jobs and a few have been criminally charged .
Molumphy , a principal at the Cotchett , Pitre , Simon & McCarthy law business firm in San Francisco , says his business firm has investigated backdating by other companies , but this is the first lawsuit the firm has filed on behalf of node .
Apple did not reply to a call search comment .
