Apple has reached a $490 million (nearly €450 million) settlement with thousands of its shareholders in a class-action lawsuit. The company is said to have misled investors by hiding falling demand for iPhones in China.
Apple CEO Tim Cook reportedly said during a call with investors in November 2018 that sales numbers for the new iPhone in Brazil, India, Russia and Turkey were disappointing, but “China doesn't belong on that list.” Reuters writes. While Apple reportedly asked suppliers a few days later to limit production to China, According to CNBC.
Two months later, it turned out that the iPhone manufacturer had achieved sales of $9 billion less than expected in the previous quarter. This is largely due to lower demand in China. A day later, the company lost 10% of the value of its shares, immediately reducing Apple's value by $74 billion.
According to contributors, Cook intentionally withheld information during the conversation. Apple denies that its CEO misled its shareholders. Apple asked the judge last year to dismiss the class action lawsuit, but that request was denied. The tech giant has it now settlement Write, in their own words, to avoid further trouble luck. Thousands of shareholders who purchased Apple shares during these two months can claim a portion of the settlement amount. The trial was scheduled to begin next September.
“Coffee buff. Twitter fanatic. Tv practitioner. Social media advocate. Pop culture ninja.”
More Stories
Take advantage of the new pool of AI winners
Political Week: Gatz bites the dust, and Maron saves face in the run-up to the elections
Restrictions have been imposed on a dairy farm in Stabroek after PFAS was discovered in meat