Lawyers representing The Hawaii Structural Iron Works Pension Trust Fund allege that Apple hyped the introduction of new iMac models and the Power Mac G4 to help buoy the company’s flagging stock value.
The law firm representing the pension trust, Milberg Weiss Bershad Hynes & Lerach LLP, specializes in class action lawsuits, and firm partner William S. Lerach filed the complaint. The company is no stranger to litigation with Apple, either. The firm sued Apple a decade ago in a securities fraud class action lawsuit worth US$100 million (the verdict was later upset on post trial motions).
The suit alleges that Apple revealed production problems related to Power Mac G4 Cubes and lower-than-expected sales of iMacs to the educational market only following the sale of 370,000 shares worth $22 million by four executives at the company.
The suit seeks class status for Apple stockholders who bought shares from July 19 to September 28, 2000. The papers were filed in federal court last week.