Quote:
Originally posted by melgross
Neither Apple nor IBM invented vaporware. That term was in use for a long time, and didn't refer to IBM
OK Apple was the first company to go to court and to then have the terms of what is and is not Vaporware revised so they can be properly found guilty.
Google->Vaporware Apple SEC
On May 30, 1991, a jury in northern California found that Apple
Computer, Inc., while promoting its Lisa computer and Twiggy disk drive
to potential consumers, had made overly optimistic statements that misled
investors under the federal securities laws. The verdict the jury rendered
would have resulted in damages exceeding $100 million. 2 Although the
trial judge ultimately set the verdict aside, 3 the point was made: potential-
ly huge securities liability can arise from statements made by corporate
officials to promote their companies' products. Nothing in the judge's
decision to set aside the verdict changed the fact that at another time and
place a jury could render an equally large verdict on similar facts.
Most securities litigation arises from securities filings describing
corporate earnings and projected financial performance. In light of Apple,
plaintiffs' class action attorneys who have previously combed annual
reports, 10-Qs, 8-Ks, etc. for overly optimistic statements following a
reported drop in earnings, now have a similarly powerful incentive to
scrutinize earlier product announcements and product press releases when
product performance does not measure up to product hype or when
products do not hit the market when promised. ~9 Even before Apple was
litigated, computer-related and other high-tech firms were more frequently
the target for securities class action suits than companies in other
industries, 2° perhaps because of the ubiquitous vaporware problem. 2t The
ruling in the Apple case thus demands that a new set of guidelines be
drawn up for the evaluation of the permissible boundaries of this product
hyping.