In a legal showdown that gripped investors’ attention, tech giant Apple emerged victorious as a New York federal judge dismissed claims alleging the company overpaid CEO Tim Cook and other top executives by millions of dollars. The ruling, issued Wednesday by U.S. District Judge Jennifer L. Rochon, dealt a significant blow to the shareholder lawsuit, which contended that Apple had inaccurately valued performance-based stock compensation.
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In a decisive 25-page order, Judge Rochon granted Apple Inc.’s motion to dismiss, along with Cook and other executives and board members, asserting that the plaintiff, International Brotherhood of Teamsters, Garage Employees Local 272 Labor Management Pension Fund, failed to provide substantial evidence of actionable misrepresentations in a U.S. Securities and Exchange Commission filing.
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Crucially, the judge emphasized that the Securities and Exchange Commission doesn’t mandate a specific method for calculating executive compensation, but only requires transparent disclosure of the chosen approach. Rochon underscored that Apple had adhered to these guidelines meticulously, as evidenced by detailed compensation tables presented in its filings.
