Breaking News

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

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.


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





Search Now

Real Estate Transactional Attorney with 4-12 years of leasing experience


Irvine office of our client seeks real estate transactional attorney with 4-12 years of experience. ...

Apply Now

Complex Litigation Attorney with 3-5 years of arbitration experience


Miami office of our client seeks complex litigation attorney with 3-5 years of law firm experience i...

Apply Now

Senior Business & Commercial Litigation Attorney


Irvine office is seeking a business and commercial litigation attorney with 5+ years of experience. ...

Apply Now

Labor and Employment Attorney with 3-4 years of litigation experience

USA-CA-Los Angeles

Los Angeles office of our client seeks labor and employment attorney with 3-4 years of litigation ex...

Apply Now


Trademark & Business Law Associate | Burlington, Vermont


Downs Rachlin Martin PLLC (DRM) is seeking an Associate attorney with 1-3 years of trademark and tra...

Apply now

Patent Assistant (Patent Prosecution)


We have an immediate opening for a Patent Assistant to join our team!  The Patent Assistant pro...

Apply now

Paralegal / Legal Secretary

USA-CA-Solana Beach

Job Description and Qualifications : Paralegal / Legal Secretary - Duties will include preparat...

Apply now

Legal Secretary / Paralegal

USA-NY-Pearl River

Busy fast paced Rockland County Matrimonial firm seeking full time experienced family law paralegal ...

Apply now

Most Popular


To Top