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Lawsuits Could Fly Over Jobs' Exit

Publication Date: 
January 14, 2009
Source: 
Forbes
Author: 
Brian Caulfield

Professor and Director of the Arthur and Toni Rembe Rock Center for Corporate Governance Robert M. Daines is quoted in Forbes in a story about possible lawsuits over Steve Jobs' medical condition:

Will Apple get sued over how it has handled disclosures of Steve Jobs' health? With Apple's stock down 6.42% in after-hours trading Wednesday, it's starting to look like a real possibility.

"From the defense bar's point of view, there's a suit every time there's a stock drop, basically," says Robert M. Daines, director of the Arthur and Toni Rembe Rock Center for Corporate Governance at Stanford University.

...

Apple is on uncertain ground, according to corporate governance experts. That's in part due to a rather morbid fact about the death of company founders: studies show it can mean a company's shares go up.

"In general--and Steve Jobs appears to be quite different--the founder [typically] has important skills at the beginning but overstays their welcome," says Daines. "So when they finally exit investors usually view this as positive."