Apple: "Let's Rock" This Backdating Settlement
One new Apple achievement that went unannounced at Tuesday’s “Let’s Rock” keynote was a final tidying-up of the company’s options backdating scandal. A group of former and current Apple executives that includes CEO Steve Jobs, CFO Peter Oppenheimer and COO Tim Cook has reached a tentative settlement in a shareholder lawsuit filed over stock-option irregularities. Under terms of the suit, Jobs et al will pay $14 million in attorney fees and damages. Well, the insurers representing them will, anyway. And they’ll pay it to Apple (AAPL) itself, because the shareholders sued those executives on behalf of the company.
Should the settlement be approved at an upcoming Oct. 31 hearing, it will put an end to an options debacle that’s been going on since 2006.