Re: recent notice of pending proposed settlement of shareholder derivative action received in mail today.
If I read the legalese in this document correctly, it appears that certain corporate officers of Apple, Inc. have offered to settle a complaint which relates to alleged misconduct related to backdating of stock option grants subsequent to an investigation by "outside directors" and the SEC.
I wonder if anyone can explain the Derivative Action issue and it's current and future significance to individual investors in practical english.
1) Who and what are "outside directors?"
2) Who exactly were the recipients of the "backdated stock options", which are laughably described by the investigating committee as "irregularities related to issuance of certain stock option grants?"
3) How much were these backdated stock options exercised for, and at what relative profit?
4) Does the fact that Apple's directors' and officers' liability insurers have agreed to pay $14,000,000 in cash to Apple, Inc., mean that the alleged bandits will reap ill-gotten rewards at the expense of director's and officers insurance protection premiums which were paid for by Apple, Inc in the first place?
5) How much did the director's and officers insurance cost?
6) I understand that the 'directors and officers' deny guilt but does their willingness to settle mean that our boys at the upper levels of mother company Apple are cut from the same ball of wax that has taken 'wall street' to the precipice purely out of greed and self-interest? Someone tell me it ain't true.
Michael
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