Stock Option Suit Against Apple Dismissed

Lora Bentley

CFO.com reported Friday a federal judge in New York dismissed a stock option backdating lawsuit against Apple. The judge ruled that the New York City Employees Retirement System and the other plaintiffs did not show a causal relationship between the backdating of stock options by Apple execs and a drop in the company's stock prices. If they choose to do so, the plaintiffs can refile their claims in a derivative action alleging that the backdating injured the company itself instead of its stock prices.

 

The story says the case centered around "6,428 stock-option grants totaling more than 200 million shares issued between 1997 and 2002 that were backdated and not properly accounted for or disclosed." The Securities and Exchange Commission has also dismissed several backdating cases of late. VeriSign and Electronic Arts are among the companies against which the SEC filed no charges.



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