Appeals court backs Apple in investor suit

A federal appeals court this week upheld a lower court decision that Apple Computer investors cannot sue the company over the fact that the Power Mac G4 Cube and other products didn't live up to Apple expectations.

The attempted class action suit, filed on behalf of those who purchased Apple shares between July 19 and Sept. 28 of 2000, also alleged that Apple knew some of its sales projections were false at the time they made them, a charge the appeals court said was not supported by the facts presented in the case.

The suit referred specifically to projections made in the summer of 2000 by Apple's then-CFO Fred Anderson that Apple sales would grow that quarter by 10 percent. It also cites comments by former controller and current CFO Peter Oppenheimer that a transition in Apple's education sales force was "progressing nicely." Apple later reported sales that fell short of expectations and said its sales force transition had been more difficult than it anticipated.

The Ninth Circuit Court of Appeals said Monday that companies are to be given leeway because forecasts are by their nature only estimates. It also upheld the lower court's ruling that the plaintiffs did not present evidence to show that any problems in the education sales force transition would translate into lower sales for the company.

As for the Cube, the lawsuit said Apple CEO Steve Jobs touted sales projections that did not materialize and that he was aware early on of problems with the computer, including an "overly sensitive power switch" and cracks, or as Apple termed them, "mold lines," that detracted from the aesthetics of the computer's clear case.

"Because design, marketing and manufacturing problems are common to business, a securities fraud claim must do more than allege the existence of such problems," the court said in its ruling. "Plaintiffs must allege with particularity that a speaker knew that the severity, timing and extent of such problems rendered the statement false when made."

The court ruled that there was no evidence that Jobs knew of the problem when he introduced the Cube. And, the court said, "although plaintiffs do allege that Jobs learned that Apple was having significant problems in the manufacture of the Cube during (the fourth quarter of 2000), they fail to allege with specificity when Jobs learned this information, exactly what information was conveyed to Jobs, or that Jobs knew the extent of the problems."

Separately, the Mac maker has also faced claims in recent months over its sales practices, the battery on its iPod and its use of the FairPlay digital-rights management technology, which works only with Apple's music store and players. The company has also filed several court actions of its own, including suits over new product leaks and another action against three men who it says leaked Tiger, the next version of Mac OS X, onto the Internet.

An Apple representative was not immediately available for comment. Representatives of the firm that brought the suit--Lerach Coughlin Stoia Geller Rudman & Robbins--did not immediately respond to an e-mail seeking comment.

[sanenazok]

Apple=Hype

What did the investors expect? Modesty or reality from Apple regarding newly announed products?

[OneWithTech]

A NOTE FROM THE EYE OF TECHNOLOGIES TORNADO

There is one thing that those investors should understand about technology. "Just because it looks like the next best thing, smells like the next best thing, and feels like the next best thing. Dosn't mean it will be the next best THING!

Apple has always been a company ahead of it's time. And if your portfolios were paying attention lately, then you should feel the wrath of the new iPod Shuffle.

Maybe you should revel in the fact that "Tiger" is coming soon and Billy is doing the "Dog Paddle" with another security lacking OS that's guarenteed to put everybody's identity at risk. That should build a signifigant college fund for your kids if you play it right.

Don't be mad, ride the wave and hang out with Technology for awhile. You'll find the leaders and the follower's. Being in the eye of technologie's tornado: I have read, seen, and heard alot. To this day the article's I read about technology still amaze me, pic's of remote controlled robots, still amaze me!

We have the ability now to ensure that new technologie's remain secure and created with the user in mind. Let's make this a year of contributing to technology, not degrading it!

Justin

Apple

Do not and new will own an apple product. I do not pay excessive prices for over-hyped anything.

[TMB333]

Apple O/S for PCs?

I would not consider myself a Microsoft fanatic, or Apple hater by any means. However, I'm familiar with Microsoft tools more so than I am with Apple only because I have several home PCs and many more at work.

I would love to get to know more about Apple technologies (besides via iPod) and would be very interested if Apple decided to create an O/S for PCs. Is that technically impossible? What about an emulator for Apple O/S's on the PC like there is for Windows O/S's on an Apple system? Technically I don't see why it couldn't be done, and if Apple's O/S is so much better than Windows (as the general consensus seems to indicate), then why don't they just make a version for the PC as there are significantly more PC's out there than Apple machines?