Study Aids
Case Briefs Overview
Casebooks
Case Briefs
I

In re Apple Computer Derivative Litigation

2008 WL 4820784 (2008)

From our private database of 46,500+ case briefs, written and edited by humans—never with AI.

In re Apple Computer Derivative Litigation

United States District Court for the Northern District of California
2008 WL 4820784 (2008)

  • Written by Robert Cane, JD

Facts

Apple Computer, Inc. (Apple) announced that it had discovered that certain Apple executives (defendants) had engaged in illegal stock-option backdating. Sixteen shareholder derivative suits were filed. Apple executives filed two motions to dismiss. While the second motion to dismiss was pending, the parties to the suits reached a settlement agreement. The parties filed a joint motion for approval of the settlement. The proposed settlement provided that the insurance carriers for certain named individual defendants would make a $14 million cash payment to Apple. Of that payment, $8.85 million was to go to attorney’s fees, leaving Apple with $5.15 million, which was about 10 percent of the value ($58 million) of the backdated options given to Apple executives. Notably, in 2006, settlements in shareholder derivative litigation averaged 2.4 percent of estimated damages. The settlement also provided that Apple would institute multiple corporate-governance reforms. The reforms were expected to increase Apple’s value. Only four objections to the settlement were received despite that over 1.4 million notices were mailed to shareholders. The court reviewed the proposed settlement agreement.

Rule of Law

Issue

Holding and Reasoning (Fogel, J.)

What to do next…

  1. Unlock this case brief with a free (no-commitment) trial membership of Quimbee.

    You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 832,000 law students since 2011. Some law schools even subscribe directly to Quimbee for all their law students.

    Unlock this case briefRead our student testimonials

  2. Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.

    Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students.

    Learn about our approachRead more about Quimbee

Here's why 832,000 law students have relied on our case briefs:

  • Written by law professors and practitioners, not other law students. 46,500 briefs, keyed to 994 casebooks. Top-notch customer support.
  • The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
  • Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
  • Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.

Access this case brief for FREE

With a 7-day free trial membership
Here's why 832,000 law students have relied on our case briefs:
  • Reliable - written by law professors and practitioners, not other law students
  • The right length and amount of information - includes the facts, issue, rule of law, holding and reasoning, and any concurrences and dissents
  • Access in your class - works on your mobile and tablet
  • 46,500 briefs - keyed to 994 casebooks
  • Uniform format for every case brief
  • Written in plain English - not in legalese and not just repeating the court's language
  • Massive library of related video lessons - and practice questions
  • Top-notch customer support

Access this case brief for FREE

With a 7-day free trial membership

Casebooks

Securities Regulation

Key Terms