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Wednesday, July 08, 2009
Report: SEC Probing Apple's Disclosures on Steve Jobs
By Matt Egan
FOXBusiness
Just because Apple (AAPL) CEO Steve Jobs has returned to work doesn’t mean regulators have forgotten about the confusing and conflicting disclosures that surrounded his departure earlier this year.
The Securities and Exchange Commission is reviewing whether or not the tech giant misled investors when Jobs’s condition went from “relatively simple” to “more complex” in the span of nine days in January, Bloomberg News reported.
Weigh In: Do you think Apple mislead investors over the health of Steve Jobs? Comment below
Apple did not immediately respond to requests for comment by FOX Business. An SEC spokesman declined comment, saying the agency doesn’t confirm the existence or nonexistence of investigations.
Jobs, who is considered integral to Apple’s success, said he had a hormone imbalance on Jan. 5, relieving some who had feared his frail appearance was an indication of something more serious.
Then on Jan 14. Apple said Jobs was taking a five-and-a-half month medical leave of absence, which it was later learned included a liver transplant.
SEC investigators want to know what Apple’s board knew at the time of the two public disclosures, Bloomberg reported. The iPhone maker would have been misleading investors even if its statements were only partially true, experts said.
“I think they would ask what happened between the first disclosure and the second to find out what changed,” Peter Henning, a former SEC lawyer and a professor at Wayne State University Law School, told Bloomberg. “If it’s an outright lie and he had a diagnosis before that first disclosure that, ‘You’re going to need a liver transplant,’ then there’s an issue. But I doubt the company out and out lied.”
The SEC review doesn’t mean the agency will accuse Apple or Jobs of any wrongdoing, Bloomberg reported. At the time of the disclosures, Apple’s lead directors, Art Levinson and Bill Campbell, were being kept up-to-date on Jobs’s condition by his doctors, the news agency reported.
Apple said last week Jobs has returned to work, albeit in a limited fashion for now. In his place, Tim Cook, Apple’s chief operating officer, has run the company.
While Apple was initially dogged by questions about the future of Jobs, its stock has surged nearly 60% year-to-date.
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