Posted On:
16-03-2024
Apple to pay $490 million in lawsuit claiming Tim Cook defrauded shareholders by concealing iPhone demand fall
Apple agreed to pay $490 million to settle a class-action lawsuit that alleged Chief Executive Tim Cook defrauded shareholders by concealing falling demand for iPhones in China.
A preliminary settlement was filed on Friday with the U.S. District Court in Oakland, California, and requires approval by U.S. District Judge Yvonne Gonzalez Rogers.
It stemmed from Apple's unexpected announcement on Jan. 2, 2019 that the iPhone maker would slash its quarterly revenue forecast by up to $9 billion, blaming U.S.-China trade tensions.
Cook had told investors on an Nov. 1, 2018, analyst call that although Apple faced sales pressure in markets such as Brazil, India, Russia and Turkey, where currencies had weakened, "I would not put China in that category."
The lowered revenue forecast was Apple's first since the iPhone's launch in 2007. Shares of Apple fell 10% the next day, wiping out $74 billion of market value.
Apple and its lawyers did not immediately respond to requests for comment on the ruling.
The Cupertino, California-based company denied liability, but settled to avoid the cost and distraction of litigation, court papers show.
