Apple escapes charges in US stock-options probe
Published: 11 Jul 2008 10:42 BST
The US Department of Justice has ended its two-year criminal probe into backdated stock options at Apple and has decided not to file charges against current and former executives, including chief executive Steve Jobs, according to a report on Thursday in The Wall Street Journal.
Apple and the Department of Justice declined to comment, but attorneys for two subjects of the probe told the newspaper that they had been notified that the investigation had concluded.
"We were always confident that, after a full and fair review of the facts, there could be no other outcome," Cris Arguedas, a lawyer for former Apple general counsel Nancy Heinen, told the newspaper.
Apple has admitted that the company backdated certain option grants, including two awarded to Jobs, in order to take advantage of more favourable exercise prices for those grants. Apple has maintained that, while Jobs was aware that the options were backdated, he was not aware of the accounting implications of the practice.
This practice isn't illegal, so long as it's disclosed, but dozens of companies failed to do so in the early part of this decade.
Former Apple chief financial officer Fred Anderson settled his case with the US Securities and Exchange Commission in 2007. In a press release he stated that he had in fact informed Jobs of the implications of the practice. Apple's board of directors absolved Jobs of any wrongdoing after an internal investigation.
However, Apple isn't free from the backdating headache yet. A shareholder lawsuit filed last month in a federal court in San Jose alleges that several executives and directors of Apple committed securities fraud by failing to disclose the company's practice of backdating certain stock option grants in the early part of this decade.
Credit: Report: No charges in Apple backdating probe from CNET News.com
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