SEC Options Backdating Suit for Ex-Apple GC?
A former general counsel for Apple Inc. may be sued by the Securities and Exchange Commission for her role in allegedly backdating two stock options grants to company executives, according to her counsel, the Bloomberg news service reports.
The SEC will likely sue Nancy Heinen this week, according to her attorney, Miles Ehrlich. At issue, he said, are an Oct. 19, 2001, stock option grant to Steve Jobs, CEO of the giant computer company, and a Jan. 17, 2001 grant made to members of Jobs’ executive team, including Heinen. Backdating stock options grants can offer the grantee a more favorable price, but the practice poses potential legal problems if not properly disclosed.
The Justice Department also is investigating, according to defense attorney Cristina Arguedas. She said “there would be no basis for the filing of criminal charges” against her client, however, and said “there was no backdating at all,” at least as far as Heinen was concerned.