Probing Apple’s Stock-Option Documents

January 4, 2006: US Federal investigators have been busy examining stock-option documents that have allegedly been falsified by former Apple employees as the company announces it will absorb $US84 million connected to misdated stock-options.

The probe in to past stock-options practices comes after Apple handed over the results of its own internal investigation to the Securities and Exchange Commission and Justice Department and last week.

After Apple’s own internal investigation last year, Apple expressed concerns over the actions of former employees in relation to reporting and recording stock-option grants. The company had found thousands of options grants that had been improperly dates.

Al Gore, former US Vice President and chair of the special committee is leading an independent investigation in to the matter. He released a joint statement with Jerome York, chair of Apple’s Audit and Finance Committee on their findings that says; “The special committee, its independent counsel and forensic accountants have performed an exhaustive investigation of Apples’ stock option granting practices.” Effectively clearing management of any wrongdoing, the statement also says “the board of directors is confident that the Company has corrected the problems that led to the restatement, and it has complete confidence in Steve Jobs and the senior management team.”

Following this investigation, Apple has revealed it will take absorb US$84 million charges associated with the wrongly documented stock options.

A report released today now claims that Apple is being sued by a shareholder who says Apple granted executives stock option the day before the announcement of Microsoft’s investment in the company.

Shares lept 33 percent after the announcement of the Microsoft deal.

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