Apple, the world’s biggest tech company, is on track to pay out more than $1 billion in compensation in the next two years as it looks to bolster its legal defense of its $100 billion IPO, people familiar with the matter said.
The compensation could come as soon as next week or next month, one of the people said.
Apple, which said last week it would pay $50 billion to settle claims of fraud and false advertising, also is in talks to agree a $200 million payment with the U.S. government to settle the antitrust case against it.
Apple said last month it will pay $100 million to settle antitrust charges with the government, while agreeing to pay a further $150 million to the Justice Department, the people familiar said.
The companies said they will not discuss the settlement.
Apple has been sued twice in the last decade by the Justice on antitrust grounds, and its legal team has been trying to win the cases on behalf of employees who were laid off in 2010.
In one of those cases, the company is trying to recover a $1 million judgment against a former employee who sued in 2013 after being laid off from Apple’s retail stores, where he worked for several years.
Apple is also fighting a class action lawsuit by another former Apple employee in San Francisco.
The case, which is still in court, alleges that employees who left the company were discriminated against and that Apple’s management used “excessive” compensation and “unfair incentives” to prevent them from leaving, according to a court filing.
In both cases, Apple has asked for a lower court to award the employees compensatory damages in a lower number than the $1,000 that they received, the court filing said.
That request was denied last month.
The case has also been on appeal.
In its filings, Apple said it has paid more than 7.7 million former employees and former associates over the years, more than any other company in the U-S.
A total of 4.7% of Apple’s total compensation is now tied to the antitrust cases.
Apple is seeking to collect an additional $1bn from the Justice, it said in its filings.
The payments are part of a broader plan Apple is trying “to rebuild its brand, grow its business, and better serve the public” as it seeks to fight the cases, said a person familiar with Apple’s plans.