Apple Lawsuit: Turn Up The Heat On CEO Jobs
Apple's report that "cleared" CEO Steve Jobs of any irregularities in the stock options backdating controversy--is not sitting well with some stockholders. A lawsuit has been filed against Apple and Jobs as a result. Mark Molumphy is a partner in the law firm of Cotchett, Pitre, Simon & McCarthy. They're the lead firm filing the suit. Molumphy appeared on "Squawk Box" to discuss the action.
First of all--Molumphy says it's not a class action lawsuit but actually a derivative lawsuit on behalf of Apple. Molumphy says the action is not a result of any drop in the stock price--but because Apple apparently let the backdating take place. The suit aims to get the money back, according to Molumphy.
Molumphy says that either Jobs knew or didn't know about the backdating and that the internal report by Apple doesn't make much sense (it said Jobs new about some dates and recommend some of those dates but did not profit from them). The backdating took place from 1996-2003.
Molumphy says that initially, Apple said two months ago that there were 15 dates of backdating--but now admits to 42 dates. Molumphy wants Apple to get the money back--and he expects the heat to be turned up on the issue from his lawsuit and what federal regulators find from their investigation.
FYI: The lawsuit is also looking into backdating stocks for Jobs at Pixar from 1997 to 2000--when Apple still controlled the animated filmmaking company. As a board member of Pixar--he apparently received backdating on 5 different dates from them. Pixar is now owned by Disney--after Disney bought it out right from Apple in 2006.