SEC Investigations into Apple Discloses Nothing to do With Investment Fraud
The Securities Exchange Commission is investigating Apple after a series of announcements by the company, concerning the state of CEO Steve Jobs' health. The investigation is not focused on any allegations of investment fraud, but on the recent confusion stirred by the CEO's health.
Last week, Jobs announced that he would be taking five months medical leave for treatment of pancreatic cancer. Nothing wrong with that, except for the fact that nine days earlier Jobs, who made a shockingly emaciated appearance at an Apple event, claimed his weight loss was the result of a hormonal imbalance that would be sorted out with nutritional therapy. Jobs' battle with cancer began in 2003; he declared himself cured in 2004 and the cancer seemed to have been eliminated. Last June, worried investors took notice of his appearance as he suddenly become frail and weak. Company spokesmen denied fears that the cancer was back and claimed that the CEO had a "bug". Soon, newspaper reports claimed Jobs had surgery to deal with nutritional deficiencies stemming from his cancer treatment. Apple share prices began quaking when the CEO failed to make an important keynote address in December 2008; soon after, in January, the "hormonal imbalance" talk came about. Predictably, the stock that began slipping zoomed back up after reps claimed the condition was easily treatable. Nine days later, Jobs dropped the bombshell – the caner was indeed back and he would be taking medical leave.
Now, the SEC, already under fire for its failure to protect investors from people like Bernie Madoff and Arthur Nadel is investigating the disclosures. They seek answers as to why there appeared to be such half truths told about the state of the CEO's health and whether the company lied about Jobs' health. A CEO's health may be a private matter, but an investor still has the right to know what's going on with the company and if he should be worried about his investment. Of course, it is entirely possible that in the nine days between the time the company announced Jobs had a hormonal imbalance and Jobs' announcement of sick leave, he found out the cancer was back.
No one expects any serious developments to arise from the review. It is being regarded more as an attempt by the SEC, which is under huge pressure for a variety of failures on its watch, to assure the American public they are taking the errors made in the announcements of Jobs' health condition seriously.
Investors' Rights
Investors have the right to be informed of facts that may affect their stock value. Concealing facts or manipulating them to affect stock prices can cause investor losses and can be grounds for a claim against the company in case of losses. An experienced securities attorney can help you determine if you have grounds for a claim.
If you have lost money due to investment fraud, contact an investment fraud attorney at Arnold & Itkin LLP for a free evaluation of your case.
