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LOS ANGELES, Jan 14 (Reuters) - Apple Inc probably will be sued by investors unhappy with the company's about-face on the health of its visionary chief executive, but the law is not clear on what duty the company has to disclose personal medical information, legal experts said on Wednesday.
Apple said CEO Steve Jobs, 53, will take a medical leave of absence until June. The announcement that comes just nine days after the pancreatic cancer survivor downplayed investor concerns about his dramatic weight loss in recent months, saying it was caused by an easily treatable hormone imbalance.
Analysts and investors complained that Apple was slow to disclose Jobs' true medical status and to form a succession plan after his 2004 cancer treatment because of his crucial role in vetting the company's forward-looking designs.
"It is a gray area because what is personal and what's a fiduciary responsibility?" Ashok Kumar, an analyst with investment banking firm Collins Stewart LLC, said. "Steve's presence at Apple probably carries significantly more weight than ... Michael Dell's presence at Dell."
The company's share price dropped as much as 10 percent on the announcement despite some analysts' belief that a potential Jobs health crisis was "baked in" to the price.
Although securities lawsuits usually arise from companies' false statements about material aspects of their businesses, Apple could run into trouble by falsely allaying investors concerns about whether Jobs would remain at its helm.
Plaintiffs and defense attorneys said this type of fraud allegation would be hard to prove and a first of its kind.