Apple seems to have got itself entangled in some kind stock option scam. It has released a statement that says that due to irregularities related to the issuance of certain stock option grants made between 1997 and 2001 the company will likely restate past financial statements. It also announced that it ahs launched an internal inquiry to probe the matter. However, Apple didn’t give a specific time when they will make a restatement. Neither has it specified any amount of the irregularities.



Apple said in June that it was investigating stock-option grants from 1997 to 2001 that include an award to the high profile Apple CEO Steve Jobs. That announcement caused Apple’s shares to drop by 2.9 percent the next day. As it looks now, the scam seems to be much more widespread and deeper than previously thought.



Following the sensational announcement Apple’s stock fell $4.59 (approx 6.6 percent), to $65 in after-hours trading yesterday. It must be noted that just before the announcement the shares had gained $1.43 in Nasdaq composite trading. Speculations are hot that Apple’s shares may take further beating in the coming days as more news of these irregularities start coming out.



It would be very interesting to see how this unfolds, especially how many of the top honchos benefited from these murky irregularities. The whole thing has brought back memories of the power behemoth Enron though there might be little similarities between the natures of the irregularities here.



Let’s wait and see how Apple tackles this latest crisis and what the repercussions would be in the tech industry.



Via: Think Secret