[NewsPoster]

It seems that the legal issues involving Apple colluding with publishers to allegedly fix the prices on e-books are taking another turn, as an Apple shareholder has filed a lawsuit in California against CEO Tim Cook and several Apple executives and directors. In the filing it's alleged that the parties involved "showed a reckless disregard for their duties" at Apple, therefore causing "significant damage" to the company in the process.

The suit echoes many of the same problems that have come to light from the class-action lawsuit over the supposedly anti-competitive sales practices that involved five of the six major players in book publishing. After a tentative approval was given in the $450 million settlement between Apple and 33 states and territories, it appears that one shareholder believes that Apple is taking on damage it shouldn't be responsible for.

The "derivative suit," uncovered by Gigaom's Jeff John Roberts, names Tim Cook, Eduardo Cue, Arthur Levinson, Ronald Sugar, Millard Drexler, Al Gore, Andrea Jung, William Campbell and 25 Does as being negligent in their duties to the company. The filing claims that the parties were involved in a "breach of fiduciary duty, waste of corporate assets, unjust enrichment, and indemnification and contribution" as a result of the e-book scheme.

While most of the claims are looking to be resolved by better policies and practices within the company, the suit asks that the parties mentioned foot the bill for the $450 million settlement on their own instead of with company funds. In the suit, the salaries and payments to each of the parties involved, with the exception of the Does, are stated as far back as 2009. In doing so, the suit is attempting to show that the defendants have no interest in stopping the sort of mismanagement that allowed the pricing fixing to occur.

Cook's salary and bonuses were disclosed twice, in an attempt to show that "demand is futile" in his situation. It's stated that Cook is "incapable of impartially considering a demand to commence and vigorously prosecute this action" because he is beholden to the board for his continued employment and compensation.

On top of paying out the damages as a result of the class-action settlement, the lawsuit wants the defendants to give up their compensation and bonuses that have been acquired dishonestly as a part of knowingly taking part of illegal activity. The funding is to be returned to Apple, as it should be considered a waste of company assets to pay out bonuses and compensation to parties that acted in bad faith on behalf of the company.

"Plaintiff, as a shareholder and representative of Apple, seeks restitution from these defendants, and each of them, and seeks an order of the Court disgorging all profits, benefits, and other compensation obtained by these defendants, and each of them, from their wrongful conduct and fiduciary breaches," reads the suit.

In the plea for relief, the plaintiff is also asking for "extraordinary equitable and/or injunctive relief" to be placed upon the defendants that would restrict proceeds earned from trading activities or other assets to ensure that an "effective remedy" is met. It's also asked that the plaintiff is awarded the cost of filing the suit, including attorney, accountant and expert fees.

Crane v. Cook et al

[thinkman]

I'm going to sue my toilet because it jammed up once in 30 years! Unthinkable. I will also be suing Apple because I had my iPhone in my pocket at the time.

[thinkman]

I'm going to sue my toilet because it jammed up once in 30 years! Unthinkable. I will also be suing Apple because I had my iPhone in my pocket at the time. While I'm at it, I'm adding my deceased parents to the suit for having given me life, whereas if they hadn't, none of this would have occurred!!!

[msuper69]

Scumbag trying to make some easy money.
Despicable.

[Inkling]

"Shareholder" (singular) is revealing. In other situations, this has meant that lawyers decided on a harassment lawsuit and had to go hunting for or even contrive an alleged victim. Their claims of damage were just that poor. Also, keep in mind the dynamics of these lawsuits. Even if the harm done was real and hundred times what is claimed (doubtful), the amount of damage done to each shareholder would be so small that payments for the damages they get aren't likely to be worth the paperwork involved. These San Diego lawyers will collect perhaps $400 for each hour of their time. Apple shareholders will be lucky if they collect $5 for each hour spent filling out paperwork. This situation exists because tort lawyers pour huge sums of money into the Democratic party. You can find some of the sums here: http://www.opensecrets.org/industries/indus.php?ind=K01 Also, there's no reason to fill sorry for Apple. In the last presidential election Apple employees gave over $500,000 to the Obama campaign, but only about $32,000 to Romney. Apple is getting screwed, here and in the DOJ ebook dispute, but they deserve what they're getting. Others have outbid them this nasty display of crony capitalism. http://influenceexplorer.com/organization/apple-inc/6fba97b1038744ad8ab27d5fac99bfd7

[DiabloConQueso]

As a shareholder, you want the stock to improve. And if you're an Apple shareholder, you've been mighty pleased with their stock performance, illegal/immoral actions or not.

This action will have one of two effects: either nothing, or the opposite effect of a stock improvement. This shareholder is either an altruistic person trying to keep Apple as moral as possible, or is a buffoon.

[Charles Martin]

This guy's going to look awfully stupid once the original case is heard on appeal.

[Stuke]

Sell you stock for the EXTREME profit it has made you (assuming that the only way you, as a Shareholder, would EVER consider a bone-head move like this is because you've been a shareholder for several years), and go buy Samsung products! There's a company with impeccable morals and business scruples, and a smartphone/tablet ensemble for you. Please, get a life.

[James Katt]

These scumbag "shareholders" and their lawyers need to be arrested, tried, convicted then given the death penalty. They do nothing to improve the world. They only increase misery.

[elroth]

Wow, James, you're kind of extreme, aren't you?

I don't like this lawsuit because what Apple did falls into a prety gray area, and I don't think it was illegal.

However, I wish this type of lawsuit would be filed more often. For example, the BP explosion and oil spill - it was criminal what the executives did, taking shortcuts on safety to save money. I think they should be held personally liable for the fines BP is being charged.

[Flying Meat]

Of course, Inkling, it is also important to get a big picture perspective:
http://www.opensecrets.org/industries/

No doubt, frivolous lawsuits happen. All up and down the line, right to left.
It would seem there "should" be a way to assure everyone's right to their day in court.