Apple Shells Out $14 million for Settlement

Apple Shells Out $14 million for Settlement

Apple has paid $14 million as a settlement on a shareholder suit filed in 2006, alleging Apple executives and directors of breaches of fiduciary duty, corporate waste, unjust enrichment and violations of state and federal laws related to alleged stock options backdating.


The resolution was initially approved by a federal charge in San Jose.  As part of the agreement, Apple's liability insurer has acceded to pay Apple a lump sum of $14 million. In addition, the insuring company should also recompense lawyers with nearly $9 million in fees and expenses.



The settlement also covers Apple's implementation of several corporate governance reforms. Moreover, the company is required to alter existing process for granting and documenting stock options and other equity awards.