Apple once concealed the decline in demand for iPhones in China and agreed to pay $490 million in litigation settlement
Mar 16,2024
Apple has agreed to pay $490 million to settle a class action lawsuit. This class action lawsuit was filed by some shareholders of Apple, accusing Apple CEO Tim Cook of concealing the decline in demand for iPhones in China and deceiving shareholders.
Apple's preliminary settlement agreement was submitted to the Oakland District Court in California, USA on March 15th and requires approval from the district judge.
This lawsuit originated on January 2, 2019, when Apple unexpectedly lowered its quarterly revenue forecast by up to $9 billion due to trade tensions between China and the United States. Earlier, Apple CEO Cook told investors on the analyst conference call in November 2018 that although Apple was facing sales pressure in weak currency markets such as Brazil, India, Russia and Türkiye, it did not mention China. Not long after, Apple's stock price plummeted by 10% and its market value evaporated by $74 billion, prompting investors to file a lawsuit against Apple.
As of the time of publication, Apple and its lawyers did not immediately respond to requests for comment.
According to court documents, Apple denies any responsibility for this, but has decided to reach a settlement with the aim of avoiding litigation costs and any resulting interference.
Since January 2019, Apple's stock price has risen fourfold, with a market value exceeding $2.6 trillion, reaching nearly $3 trillion at one point, making it the world's largest listed company by market value.
Apple's preliminary settlement agreement was submitted to the Oakland District Court in California, USA on March 15th and requires approval from the district judge.
This lawsuit originated on January 2, 2019, when Apple unexpectedly lowered its quarterly revenue forecast by up to $9 billion due to trade tensions between China and the United States. Earlier, Apple CEO Cook told investors on the analyst conference call in November 2018 that although Apple was facing sales pressure in weak currency markets such as Brazil, India, Russia and Türkiye, it did not mention China. Not long after, Apple's stock price plummeted by 10% and its market value evaporated by $74 billion, prompting investors to file a lawsuit against Apple.
As of the time of publication, Apple and its lawyers did not immediately respond to requests for comment.
According to court documents, Apple denies any responsibility for this, but has decided to reach a settlement with the aim of avoiding litigation costs and any resulting interference.
Since January 2019, Apple's stock price has risen fourfold, with a market value exceeding $2.6 trillion, reaching nearly $3 trillion at one point, making it the world's largest listed company by market value.