Steve Jobs health revelation triggers lawsuit speculation

Stephen Withers
Friday, 16 January 2009 02:53

Opinion and Analysis

The news that Steve Jobs' medical condition is "more complex" than previously disclosed has led to speculation that we will see class actions brought against Apple or its directors.

Apple CEO Steve Jobs recently announced that he will take a medical leave of absence until the middle of the year. He had previously downplayed concerns about his health following surgery for pancreatic cancer in mid 2004.

Apple's share price fell abruptly on the news, but by close of trade on Thursday had recovered to $US83.38 - fairly close to where it would have been if the trend of the previous four trading days had continued.

So there is an argument to be made that the only people hurt by the news were those that panicked and dumped their shares.

Justified or not, there is a section of the investment community (and of Apple's customer base, for that matter) that sees Jobs' presence at the helm as being crucial to the company's success.

It may well be that he can take credit for turning the company around, but that doesn't mean he's the only person that can run Apple successfully - just that he's done a better job of it than the executives who were in charge during Jobs' 'wilderness years.'

Anyway, it seems likely that someone will bring legal action claiming that Apple or its directors failure to keep the market fully informed about Jobs' health constituted a material misstatement.

What are the chances of success? Please read on.