Apple cleared in backdating scandal - Everything just peachy and squeaky-clean

By Dave Murray @ Friday, July 11, 2008 12:46 PM

Section - Business/Financials

Apple, and its leader Steve Jobs, has been cleared by the Justice Department of doing anything wrong over a share backdating scandal.

The DoJ's two-year criminal probe has been closed and as the DoJ has decided not to file charges against current and former executives, including CEO Steve Jobs.

Cris Arguedas, a lawyer for former Apple general counsel Nancy Heinen, told the Wall Street Journal that after the DoJ looked at the facts there could have been no other outcome. Apple admitted backdated certain option grants, including two awarded to Jobs, in order to take advantage of more favourable exercise prices for those grants. It was not illegal, so long as it's disclosed.

Apple scapegoated former Heinen CFO Fred Anderson. Anderson settled his case with the Securities and Exchange Commission in 2007, but told the press he had informed Jobs about everything. Apple still has a shareholder lawsuit filed against it for failing to disclose the company's practice of backdating certain stock option grants. X

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