Apple 2005 Annual Report Download - page 20

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directly as an individual shareholder. Defendants filed a demurrer which is scheduled to be heard on December 6, 2005.
Baghdasarian, et al. v. Apple Computer, Inc.
Plaintiffs filed this action in Los Angeles County Superior Court on October 31, 2005, on behalf of a purported nationwide class of all
purchasers of all Apple wireless products (router, modem, or adaptor) sold at any time. The complaint alleges that the Company misrepresented
the transmission rates of these products. The complaint alleges causes of action for breach of express warranty and for violations of the
Consumer Legal Remedies Act, California Business & Professions Code §17200 (unfair competition) and California Business & Professions
Code §17500 (false advertising). The complaint seeks damages and equitable remedies. The Company’s response to the complaint is not yet
due.
Branning et al. v. Apple Computer, Inc.
Plaintiffs filed this purported class action in San Francisco County Superior Court on February 17, 2005. The complaint alleges violations of
California Business & Professions Code §17200 (unfair competition) and violation of the Consumer Legal Remedies Act (CLRA) regarding a
variety of purportedly unfair and unlawful conduct including, but not limited to, allegedly selling used computers as new and failing to honor
warranties. Plantiffs also bring causes of action for misappropriation of trade secrets, breach of contract, and violation of the Song Beverly Act.
Plaintiffs request unspecified damages and other relief. The Company received service of the complaint on March 12, 2005, and on March 13,
2005 the Company filed a motion to transfer the case to Santa Clara County Superior Court. On May 9, 2005, the Court granted the motion and
transferred the case to Santa Clara County Superior Court. On May 2, 2005, Plaintiffs filed an amended complaint adding two new named
Plaintiffs and three new causes of action including a claim for treble damages under the Cartwright Act (California Business and Professions
Code §16700 et seq.) and a claim for false advertising. The Company filed a demurrer to the amended complaint which the Court sustained in
its entirety on November 10, 2005. The Court granted Plaintiffs leave to amend their complaint.
Burrow v. Apple Computer, Inc.
Plaintiff filed this purported class action in Orange County Superior Court on February 17, 2005 alleging false advertising regarding the copy
protection capabilities of DVD Studio Pro. The Complaint alleged violations of California Business & Professions Code §17200 (unfair
competition), California Business & Professions Code §17500 (false advertising) and negligent misrepresentation. Plaintiff requested
unspecified damages and other relief. The Company filed an answer on April 7, 2005 denying all allegations and asserting numerous
affirmative defenses. The parties have reached a settlement. Settlement of this matter did not have a material effect on the Company’s financial
position or results of operation.
Butzer, et al., v. Apple Computer, Inc.
Plaintiffs filed this action on August 23, 2005, in the United States District Court for the Northern District of California, San Jose Division, on
behalf of a purported nationwide class of all purchasers of the Company’
s PowerBook G4 portable computers. The complaint alleges defects in
the memory of the computers. The complaint alleges that this purported defect extends to other series of the Company’s portables and states
that plaintiffs reserve the right to amend the complaint to include these other series. Plaintiffs assert claims for alleged violations of California
Business & Professions Code §17200 (unfair competition), California Business & Professions Code §17500 (false advertising), the Consumer
Legal Remedies Act and the Song-Beverly Consumer Warranty Act. The complaint seeks remedies including restitution and/or damages and
injunctive relief. The Company filed an answer on October 19, 2005 denying the material allegations and asserting numerous affirmative
defenses.
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