Tuesday, March 8, 2011

class action

Today I received a Proof of Claim form pertaining to some class action suit and settlement with Apple, which looks like it was sent to anyone who owned their stock between certain dates from 2001 to 2006.

The total amount of the settlement: $16.5 million. Now how much of that would I receive were I to file a claim? A potential 7 cents per each share I owned.

Yes, 7 cents per share. But wait, there's more! The claim form said that since it is likely not everyone who is entitled to file a claim will do so, then the payout could conceivably exceed 7 cents per share.

Now we're talking. I'm already drooling at the prospect of maybe 25 cents a share.

Given that you have to list out all the details of each stock transaction and include documentation, and given the measly number of shares I must have owned during that time, I'm going to be one of those who don't file a claim and thus someone else can have my 7 cents.

This kind of thing is only worthwhile to super wealthy investors who don't need any more money, or to mutual funds that owned a ton of shares. So let's say those funds file claims - who is it going to benefit? Do you think they will pass the proceeds along to the fundholders? I think not. I think some folks will just get a larger bonus this year.

And how much do the attorneys get who handled this case? $2 million plus $450,000 in expenses. That's a lot more than 7 cents per person. Or hour.

Just another ridiculous thing in life.

The cost of your next Apple product just went up by about 7 cents.

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