Jabil circuit sec investigation backdating Chat with chicks no registration
The special committee did not find that any of Jabil’s executives issued backdated options to themselves, but it did find that the company misapplied APB 25. Fourth, plaintiffs alleged that the defendants made false statements regarding stock option practices in Jabil’s proxy statements in violation of Section 14(a) of the 1934 Act, 15 U. Turning to plaintiffs’ insider trading claim, the Eleventh Circuit agreed with the district court’s holding that the complaint failed “to state which defendants knew what information and why the information was material.” Although the complaint alleged numerous class period stock sales, it did not contain any “particularized allegation” that any of the individual defendants were aware of any accounting errors at the times they made their trades.
As a result of that misapplication, Jabil overstated its earnings by .3 million from 1996 through 2005, and was required to restate its financials for those periods. The Eleventh Circuit also rejected plaintiffs’ claim that defendants violated Section 10(b) and Rule 10b-5 by making false quarterly projections.
In addition, Jabil is facing several shareholder lawsuits.
The company said its "special review committee has concluded that there is no merit to the allegations in the state court derivative complaints that Jabil's officers issued themselves backdated stock options or attempted to cause others to issue them." Meanwhile, Jabil's lenders for a revolving credit facility have agreed to waive the requirement that the company submit quarterly and yearly financial statements to them until Feb. The company's annual shareholder meeting in January will be rescheduled until after Jabil files its 10-K. Petersburg, Fla.-based electronics manufacturing services firm shed 40 cents, or 1.4%, to .43.
By launching the probe, Apple becomes perhaps the highest-profile example of dozens of technology companies where the possible backdating of executive option grants have come under scrutiny.
The company said a special committee of its outside directors has hired independent counsel to perform the investigation and inform federal securities regulators of any details that are discovered.For further information, please contact John Stigi at (213) 617-5589 or Christopher Loveland at (202) 772-5313.They stood united in purpose to secure the future of Mackinaw City. The United States District Court for the Middle District of Florida dismissed the amended complaint.Although the decision in Jabil is focused on the unique (and increasingly anachronistic) problem of options backdating, the Court’s opinion offers clear and useful guidance to practitioners beyond that narrow area regarding the Reform Act’s requirements for pleading scienter and the application of Tellabs, the Reform Act’s safe harbor provisions for forward-looking statements, the law regarding insider trading, and causation and damages in proxy solicitation claims.
The company did this, plaintiffs alleged, despite representations by the company in filings with the Securities and Exchange Commission (“SEC”), including proxy statements, that the exercise price of stock options was always “at least equal to fair market value.” The company also represented in its SEC filings that its accounting for employee stock options complied with Accounting Principles Board Opinion No. Disagreeing with the district court, the Eleventh Circuit held that Jabil’s restatement of its financials sufficed to support a finding that the company’s SEC filings contained false statements.