Free Newsletters
InfoWorld Daily

InfoWorld
Log-in | Register

Report: Steve Jobs subpoenaed in backdating case

Apple CEO asked to give a deposition to the SEC in its stock option backdating lawsuit against Apple's former General Counsel


Apple CEO Steve Jobs has been subpoenaed by the U.S. Securities and Exchange Commission (SEC) to give a deposition in the stock option backdating lawsuit against former Apple General Counsel, Nancy Heinen.

Citing two sources familiar with the case, Bloomberg reports that the subpoena is not part of an SEC investigation. Jobs' testimony is required as part of a lawsuit brought against Heinen by the SEC in April 2007.

Heinen is the only former Apple executive charged in the backdating scandal. Apple's internal investigation cleared all current executives of any wrongdoing, and the SEC reached a deal with former CFO Fred Anderson in the case.

Apple representatives were not immediately available to comment.

The SEC says that Heinen granted 4.8 million options to six Apple executives, including herself, Anderson and CEO Steve Jobs, in February 2001. To avoid reporting an $18.9 million compensation charge, Heinen backdated the options to January 17 when the company share price was much lower, the SEC said. She then told her staff to prepare false documents showing the board of directors had acted on that day.

Later, in December 2001, the company granted 7.5 million options to Jobs. Again, Heinen avoided a $20.3 million charge by drafting minutes for a fake board meeting she said happened on Oct. 19, the SEC said. That meeting had never occurred.

Heinen has maintained her innocence in the case and a statement by her lawyers said, "Nancy Heinen's integrity is unimpeachable."

Apple's backdating problems started in June 2006, when the company announced that an internal probe had found some irregularities in some option grants issued between 1997 and 2001. Four months later, Apple said a special committee had found irregularities in 15 of the grants made between 1999 and 2002. The internal investigation also found that Jobs was aware that favorable grant dates had been selected but didn't receive or benefit from those grants and was "unaware" of the accounting implications.

In late December, Apple disclosed more backdating-related news, again clearing current executives and taking an $84 million charge on its restated earnings.

Macworld is an InfoWorld affiliate.


Talkback:

commentPost a Comment

 

MOST COMMENTS

 
 





VIRTUAL MACHINES: SUN'S XVM VIRTUALIZATION PORTFOLIO
This Webinar discusses how software companies and IT organizations can leverage virtualization and management technologies from Sun and VMLogix to consolidate lab infrastructure and automate build and test processes so that software can be delivered more quickly, cost-effectively and reliably. Sponsored by Sun

»  Click here to view this Webcast
  Enterprise Data Security Solutions Guide
Data security used to be about outside threats. These days the biggest challenge for data-driven organizations is the management of secure information from the inside out. Data is available on laptops, your network and even USB devices, but not always secure. Read this Solutions Guide to learn the best ways to keep it safe. Sponsored by ISC2

»  Click here to download now

- Special Advertising Partners -
WHITE PAPERS
 

» Technology White Papers Library

Technology White Papers by Topic

Technology White Papers E-mail Alert

Find out when the latest white paper is available:
 
 
INFOWORLD MARKETPLACE
 
» BUY A LINK NOW
 
 

Video

 
 
 

Podcasts

 
IFW Daily 11/21/2008

A look at the week that was: Yahoo's Yang steps down, Adobe shows off ...

 
 
 

Columnists

 
 
 

Resource Center


Ads by techwords beta  [See your link here]
 




Sponsored Technology Links

 
 
 HOME  NEWS  BLOGS  PODCASTS  VIDEOS  TECHNOLOGIES  TEST CENTER  EVENTS   About | Advertise | Awards | RSS | Contact Us 

Copyright © 2008, Reprints, Permissions, Licensing, IDG Network, Privacy Policy, Terms of Service.
All Rights reserved. InfoWorld is a leading publisher of technology information and product reviews on topics including viruses,
phishing, worms, firewalls, security, servers, storage, networking, wireless, databases, and web services.

CIO :: ComputerWorld :: CSO :: Demo :: GamePro :: Games.net :: IDG Connect :: IDG World Expo
Industry Standard :: IT World :: JavaWorld :: LinuxWorld :: MacUser :: Macworld :: Network World :: PC World :: Playlist