Apple settles backdating suit

Under the terms of the settlement, US$14m will be paid to the company and its shareholders.

The payment itself will be made by the company's insurers on behalf of the executives. Apple will also pay some US$8.8m in attorneys' fees and expenses.

Additionally, the company has agreed to a number of new measures designed to prevent a recurrence of the 2006 incident in which several Apple executives were granted stock options with favourable dates between 1997 and 2002.

The settlement could finally allow Apple to move past the options scandal, which came to light after an internal investigation led to Apple making a filing with the Securities and Exchange Commission (SEC).

Apple said in the report that, although co-founder and chief executive Steve Jobs had signed off on the options, he was not aware that they were being granted illegally.

The case was then picked up by the SEC, which cleared the company of wrongdoing but filed charges against two former executives and left the door open for additional charges against individuals within Apple.

Ultimately, no new charges were filed against Jobs or any other Apple executives. The two charged in the matter, former chief financial officer Fred Anderson and former general counsel Nancy Heinen, eventually settled with the SEC.