Apple CEO Steve Jobs and several other senior executives and board members have agreed to settle a lawsuit that claimed the company was damaged by their role in Apple's mishandling of stock option awards, an Associated Press report said.
Due to the structure of the lawsuit, insurers representing Apple's directors and officers will pay the iPod and Macintosh maker â‚¬10 million (US$14 million), the Associated Press report also said.
The settlement is designed to repair damage to Apple that the shareholders, who are suing on behalf of the company and not themselves, claimed the company suffered because of the stock options tampering, the report said.
Apple, however, is on the hook for â‚¬6.1 million (US$8.5 million) in plaintiffs' attorneys' fees and â‚¬250,700 (US$350,000) in expenses, according to a filing in US District Court in San Jose, Calif. Apple's board must also adopt several reforms related to stock option grants.
Apple spokeswoman Susan Lundgren said the company had no comment.
The so-called 'derivative lawsuit' _ in which shareholders sue executives or board members over claims that their actions harmed the company as a whole _ has became a popular tool in stock options cases.