The email Apple CEO Tim Cook sent to CNBC analyst Jim Cramer, and which was read on the air, may have violated Securities and Exchange Commission regulations, according to lawyers speaking to MarketWatch. The regulations are designed to ensure that information that may impact a company’s share price is made available to the public in a fair and open way, rather than privately disclosed to particular individuals or entities.
Cook’s email revealed that the growth in iPhone activations “has actually accelerated over the past few weeks, and we have had the best performance of the year for the App Store in China during the last 2 weeks” – information that Apple had not previously disclosed …
“The SEC will undoubtedly want to take a look at this,” said Thomas Gorman, a partner at the law firm Dorsey & Whitney who defends companies and individuals facing SEC and other regulatory investigations. At the very least, the SEC will contact Apple to seek context for the disclosure, he said.
Bill Singer, another lawyer and owner of the BrokeAndBroker.com industry blog, agreed.
It constitutes a disclosure giving certain individuals the benefit before it was percolated by the rest of the public, during a fast-moving, extraordinary market.
The SEC declined to comment, and Apple also declined comment aside from confirming to MarketWatch that Cook sent the email.