Well, Apple legal has cleared another hurdle for the stock option back-dating scandal that rocked the computer industry last year. A judge in San Jose dismissed a major lawsuit against the company because the suit was not brought within a three-year window of the incidents. Of course, since the back-dating was only disclosed last year but stopped in 2002, it would have been pretty hard to do that in the first place. Actually, it’s absurd that our laws are written in such a way that they need to be prosecuted very quickly after commission. I understand the purpose of a statute of limitations, but why wouldn’t it be within three years of discovery? Only seems fair.
Picture via Fake Steve
4 responses to “Judge Dismisses Suit Against Apple for Back-Dated Options”
“Actually, it’s absurd that our laws are written in such a way that they need to be prosecuted very quickly after commission.”
That depends upon the crime. If there was no loss, and nobody realized a “crime” had been committed, what’s the advantage of a longer prosecution window? Shareholders (like myself) were not hurt by this.
“I understand the purpose of a statute of limitations, but why wouldn’t it be within three years of discovery? “
Because the real discovery date is the day the discovery is announced. Such a change would extend the statute of limitations indefinitely, as the prosecutor could “discover” the offense whenever it was convenient.
Also keep in mind that options back-dating has only recently been redefined as a crime simply to work up some class rage.