datingsite in th us - Apple backdating settlement
A class action settlement has been reached in a class action lawsuit pending against Apple Inc.(“Apple” or “Defendant”) in the United States District Court for the Northern District of California, alleging, among other things, that Apple (symbol: AAPL) improperly backdated Apple stock options between 20, according to an Apple class action lawsuit news report.
It also says that the $8.85 million is to be paid by Apple.
It is not clear whether or not the D&O insurers will be reimbursing Apple for the $8.85 million or if the $14 million is the only payment that the D&O insurers will be making in connection with the settlement.
It would be helpful if any reader with more specific knowledge of the insurance arrangements pertaining to this settlement would let me know.
However, as a practical matter aren’t you ‘double counting’ since, presumably, the plaintiff fee awared was paid by Apple from the D&O proceedsit received from its carriers?
"Assuming this reader’s analysis is correct, this is a very important distinction.
The Stipulation of settlement is consistent with the reader’s hypothesis, but not definitive.
The Stipulation is clear that the million payment is coming from Apple’s D&O carriers.
As reflected in the parties’ Stipulation of Agreement of Settlement (here), the plaintiffs in the consolidated Apple derivative action agreed to dismiss the action subject to the defendants agreement to pay million to the company; the defendants’ agreement to pay the plaintiffs’ counsel’s various attorneys’ fees and costs totaling .85 million; and the company’s agreement to adopt certain corporate governance reforms.
According to the Stipulation, the various derivative lawsuits "were a material factor in obtaining the million payment from Apple’s liability insurers." The total cash value of the various payments is .85 million.
UPDATE: An alert reader has raised an important question about my statement that the total cash value of this settlement is .85 million.
The reader said the following in an e-mail to me: "You describe the settlement as involving a cash payment of .85 million based on the million D&O settlement paid to Apple and the .85 million fee award expense payment made by Apple to the plaintiffs.