Feeds

Dead Steve Jobs sued by own shareholders in no-poach pact brouhaha

'His conduct a reminder that businessmen commit unlawful acts in zealous pursuit of profit'

Providing a secure and efficient Helpdesk

Apple is once again facing a lawsuit, this time from its own shareholders over its no-poaching-of-staff pacts with rivals.

A lawsuit [PDF] filed in California's San Jose District Court earlier this week claims the Cupertino giant misled investors and damaged the value of the company by striking a fishy hiring agreement with other corporations.

The class-action suit, filed by shareholder R. Andre Klein on behalf of all Apple shareholders, claims the iPhone giant committed "breach of fiduciary duty, gross mismanagement, corporate waste, and breach of the duty of honest services." The sueball names Apple CEO Tim Cook and the late cofounder Steve Jobs among the defendants in the case.

According to the filing, Apple violated provisions of the US Securities and Exchange Act when executives crafted agreements with Google, Intel, Adobe and more, to not actively recruit employees away from each other.

The suit notes that Jobs (whose estate is listed as a defendant in the case) was particularly egregious in sealing deals with rival execs.

"Jobs's conduct is a reminder that even widely respected businessmen can knowingly commit unlawful acts in the zealous pursuit of profits," the suit alleges.

"In this case, Jobs and the other Individual Defendants knowingly caused Apple to enter into agreements that violated California law and U.S. antitrust laws."

The suit seeks unspecified payouts from the company for damages to shareholders from the negative impact of the case on the company's value.

Apple lost a similar class-action case brought by ex-employees who felt they had been stiffed by the no-poach pact, and the iOS slinger looks to be on the hook for a substantial payout. The biz had offered a package worth $325m which the plaintiffs' lawyers accepted, but the deal was called off by Judge Lucy Koh over concerns that Apple and the other defendants were low-balling the workers. ®

Providing a secure and efficient Helpdesk

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Special pleading against mass surveillance won't help anyone
Protecting journalists alone won't protect their sources
Big Content Australia just blew a big hole in its credibility
AHEDA's research on average content prices did not expose methodology, so appears less than rigourous
Vodafone to buy 140 Phones 4u stores from stricken retailer
887 jobs 'preserved' in the process, says administrator PwC
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.