|  | | 2008 News and Press Releases | | |
DISMISSAL NEWS:
Court Dismisses Shareholder Suit Against Jabil Circuit
Margie Manning
Tampa Bay Business Journal. April 10, 2008
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EXCERPT: A class action lawsuit alleging fraud by Jabil Circuit Inc. executives has been dismissed by a federal court judge in Tampa. The U.S. District Court for the Middle District of Florida dismissed the complaint Wednesday, according to Jabil's quarterly filing with the Securities and Exchange Commission. However, the court also said it would allow the plaintiffs to amend the complaint by May 12, the filing said. The suit, initially filed in September 2006, alleged some of Jabil's current and former officers and directors engaged in a scheme to fraudulently backdate the grant dates of stock options. The lawsuit alleged the scheme caused the company's financial statements to understate management compensation and overstate net earnings, and thereby inflated the company's stock price. The suit was one of several Jabil faced over the issue of stock option backdating. The company earlier agreed to settle a shareholder derivative lawsuit originally filed in Pinellas County Circuit Court in April 2006 that alleged some of Jabil's officers and directors breached their fiduciary duties by backdating stock option grants between August 1998 and October 2004. Two federal derivative suits filed in July 2006 in Tampa asserted similar claims. |
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