This one’s going to run and run.
An Apple shareholder has filed a shareholder derivative suit against Tim Cook, Bill Campbell and other members of Apple’s board over the company’s behavior, highlighted during the Techtopus wage fixing suit. The suit also includes the estate of Steve Jobs as a defendant.
Plaintiff R. Andre Klein, acting on behalf of other Apple shareholders, claims that not only was Apple part of a secret wage-fixing cartel but it also failed to disclose to shareholders a DOH investigation into that cartel, or a settlement reached with the DOJ. The suit draws heavily on documents uncovered during the subsequent class action suit on behalf of workers affected by the cartel.
Despite the DOJ’s investigation, Apple did not disclose to its shareholders the details of the DOJ’s investigation. None of Apple’s proxy statements, quarterly filings, and annual filings disclosed the DOJ investigation, the settlement reached in September of 2010, or the final judgment signed on March 17, 2011. The Company’s proxy statements filed on January 11, 2011, January 9, 2012, January 7, 2013, and January 10, 2014 also failed to disclose the DOJ investigation, settlement, and final judgment. Similarly, the Company’s 8K, 10Q, and 10K filings from October 2010 to the present do not mention the DOJ’s investigation, settlement, or final judgment.
Here’s the court filing, which accuses the company and its directors of breach of fiduciary duty, gross mismanagement, waste of corporate assets, and breach of the duty of honest services…