LA Schools Halt $1B iPad Initiative (AAPL)

Los Angeles schools Superintendent John Deasy is suspending use of a $1 billion iPad program with Apple (Nasdaq: AAPL).

News comes on mounting scrutiny after it was discovered that Deasy and his top deputy had close ties with several Apple executives along with publishing company Pearson.

An initial $30 million contract with Apple and Pearson was approved just over a year ago, according to the LA Times. That was expected to expand to about $500 million with the project rolling out over the next year or so. An additional $500 million investment was to be made for expansion of Internet and other infrastructure at schools.

Below is a memo sent out by Deasy on Monday:

You May Also Be Interested In

• Jefferies Downgrades Apple (AAPL) to Underperform
• Corning (GLW) on watch following Apple (AAPL) downgrade as all-glass phone appears cancelled
• OpenAI eyes 2027 hardware entry with high-end smart speaker, Bloomberg reports