• E-mail
• Print
• Comment
• Font Size
• Digg
• del.icio.us
• Discuss article

Stull, Stull & Brody Announces Class Action Against Apple Computer, Inc.

Posted on: Friday, 25 August 2006, 18:00 CDT

A class action lawsuit was filed yesterday in the United States District Court for the Northern District of California on behalf of shareholders who purchased securities and/or sold put options of Apple Computer, Inc. ("Apple" or the "Company") (NASDAQ: AAPL) between December 1, 2005 through August 11, 2006, inclusive (the "Class Period").

The Complaint charges that Apple and certain of its officers and directors violated Sections 10(b), 14(a) and 20(a) of the Securities Exchange Act of 1934 and Rules 10-b(5) and 14a-9 promulgated thereunder. The action alleges that defendants made false and misleading statements and omissions concerning Apple's improper and undisclosed practice of backdating options conferred on certain executives which made it appear that such options were issued on dates when the market price of Apple stock was higher than actual market price on the actual grant dates. This improper backdating masked the virtually instant profits the option recipients obtained. Under generally accepted accounting principles, these profits were required to be recognized as an expense in the Company's financial statements for the appropriate period, but were not. Thus, the Company's financial statements in its Form 10-K filing for the fiscal year 2005 and interim financial statements for 2005 and 2006 were materially false and misleading. In addition, the Company's Proxy Statement for its annual shareholder meeting held in 2006 was materially false and misleading because it contained statements concealing Apple's practice of backdating stock options. The Complaint further alleges that as a result of defendants' actions, plaintiffs and the Class were damaged.

Plaintiffs seek to recover damages on behalf of class members and are represented by the law firm of Stull, Stull & Brody, which has significant experience and expertise in prosecuting class actions on behalf of investors.

If you purchased Apple securities and/or sold put options on Apple shares between December 1, 2005 and August 11, 2006, inclusive, you may be a member of the class and have until October 24, 2006, to move the Court to serve as lead plaintiff, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements. To be a member of the class, however, you do not need to_take any action at this time. Should you decide to seek appointment asa lead plaintiff, you may retain Stull Stull & Brody, or counsel of your choice.

If you have any questions concerning this notice or your rights or_interests with respect to this matter, please contact Howard T. Longman of Stull, Stull & Brody at 973-301-0900 or toll free at 800-337-4983 or via e-mail at Tsvi@aol.com or by writing to Stull, Stull & Brody, 6 East 45th Street, New York, NY 10017.

Source: Business Wire

More News in this Category