p2pnet.net News:- Might the US Securities and Exchange Commission de-list Apple Computers if fake document charges are upheld?
Probably not because, “Who’s served by the delisting of Apple?” asks Jahan Raissi, a partner in a lw firm which represents companies in SEC matters, quoted by The Recorder. ‘
“If it was Joe’s Shlock and Poultry Farm, then sure, get them out of there. But not Apple.”
Apple’s annual report will be published during the holiday season, the slowest news week of the year. And that must be a relief to Steve Jobs, says the story.
“Given the uncomfortable admissions about its past stock options practices – and the cost to the company,” Apple will make in the, “delayed SEC filing due by Friday” and, “less public attention is probably a good thing”.
However, the relief will be temporary, says The Record states.
“According to people with knowledge of Apple’s situation, federal prosecutors are looking closely at stock option administration documents that were apparently falsified by company officials to maximize the profitability of option grants to executives.”
The documents came to light during an internal probe that ended in October and, “individuals familiar with the case” requested anonymity, “because it remains the subject of criminal and civil government investigations,” says The Recorder. “The falsification of documents is perhaps the key issue for government officials trying to determine which of their 100-plus backdating investigations will be pursued as criminal matters and which will be limited to civil SEC inquiries.”
It could take months for the government to decide whether or not to, “file criminal charges against Jobs,” but the 10(k) filing on Friday should provide plaintiff lawyers with ammunition for their suits against the company, the story states, going on to quote Mark Molumphy, representing shareholders in a securities class action against Apple, as saying, “We anticipate it’s going to be a very substantial restatement, based on the option grants on record.”
Apple still plans to file the 10(k) by Friday, “a date reached in an accord with NASDAQ after Apple announced the options issues would prevent them from filing by the normal Dec. 15 deadline,” says The Recorder, adding:
“But even if Apple misses the filing date, the company may get a reprieve from the normal sanction of delisting, if only because the exchange would be hesitant to prevent normal trading of a company of such great significance to investors.”
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The Recorder – Faked Docs May Be Core of Apple Case, December 26, 2006