Breaking News

Lawsuit Filed Against Apple Alleging Misconduct by Senior Directors
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

Apple Inc. Headquarters

Summary: Apple is accused of breaching its fiduciary duty, gross mismanagement, corporate waste, and a breach of the duty of honest services in a new derivative shareholder complaint filed this week.

AppleInsider reports that a derivative shareholder complaint has been filed by Plaintiff R. Andre Klein this week in the United States District Court for the Northern District of California against Apple. The suit alleges senior directors and officers at Apple committed a “breach of fiduciary duty, gross mismanagement, corporate waste, and breach of the duty of honest services.” The suit names the late Steve Jobs and current CEO Tim Cook in its list of defendants.

  
What
Where


The heart of the suit is the allegation that the defendants forced the company to violate antitrust laws, stifled worker wages, and issued false and misleading proxy statements. This led to Apple being harmed due to being forced into a settlement with the Department of Justice in 2010. Apple is also involved in a class action suit filed by a group of its employees. Obviously, this has hurt the company’s reputation, and has hindered its innovation.

Therefore, because of these actions, Apple was forced to spend a fortune on “expenditures related to ‘years of lost opportunities to hire more qualified employees that were employed at other companies’” as well as costs associated with defending itself and rebuilding its reputation.

The complaint echoes the pending class action suit, in which employees allege Apple endorsed anti-solicitation agreements aimed to stop worker poaching between Adobe, Google, and Intel. Judge Lucy Koh identified Jobs as a “central figure in the alleged conspiracy.” Judge Koh based this statement on witness depositions and email correspondence between Jobs, Google’s Sergey Brin and Eric Schmidt, and former Palm CEO Edward Colligan. Colligan alleges Palm was threatened with a patent suit if Palm “poached an Apple employee.”

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!




Other named defendants include William Campbell, former Chairman of Apple’s board; Fred Anderson, former CFO; and Mickey Drexler, Art Levinson, Bob Iger, and Andrew Jung, former board members. Some 30 “doe defendants” are also cited, however, their identities will only be revealed if the suit enters the discovery phase.

Image credit: Wikipedia





 

RELEVANT JOBS

Part-time Contract Federal Government Contracts Attorney

USA-DC-Washington

Koprince Law LLC, a boutique law firm in Lawrence, Kansas that focuses exclusively on the unique leg...

Apply now

Legal Secretary

USA-LA-New Orleans

A New Orleans litigation law firm is seeking an experienced Legal Assistant / Legal Secretary to und...

Apply now

Consumer Bankruptcy Attorney

USA-TX-Fort Worth

We are currently looking for a consumer Bankruptcy Attorney to join our team. This position is respo...

Apply now

Case Manager / Legal Assistant / Paralegal

USA-FL-Clearwater

Want to have a fulfilling career with purpose helping military veterans? We are a *dog friendly* ...

Apply now

BCG FEATURED JOB

Locations:

Keyword:



Search Now

Tax Attorney

USA-MI-Bloomfield Hills

Bloomfield Hills office of a BCG Attorney Search Top Ranked Law Firm seeks tax attorney with 10+ yea...

Apply Now

Tax Attorney

USA-MI-Detroit

Detroit office of a BCG Attorney Search Top Ranked Law Firm seeks tax attorney with 10+ years of exp...

Apply Now

Litigation Attorney

USA-IL-Chicago

Illinois office of a BCG Attorney Search Top Ranked Law Firm seeks litigation attorney with 3+ years...

Apply Now

SEARCH IN ARCHIVE

To Top