Electronics Production | April 10, 2008
Lawsuit against Jabil dismissed
A class action lawsuit alleging fraud by executives of Jabil Circuit has been dismissed by a federal court judge in Tampa, USA.
Jabil announced in their quarterly filing with the Securities and Exchange Commission that the class action suit has been dismissed. However, it was also stated that the plaintiffs have the right to amend their complaint until May 12. The lawsuit, filed in September 2006, stated that current and former directors and officers backdated the grant dates of stock options in a fraudulent way. This allegedly understated management compensation, while overstating net earnings. This has consequently inflated the stock price.