apple reaches $490M settlement for fraud

Apple has reached a $490 million settlement to resolve a class-action
lawsuit that alleged Chief Executive Tim Cook defrauded shareholders by
concealing falling demand for iPhones in China.

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.”

Apple told suppliers a few days later to curb production.

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.

https://www.cnbc.com/2024/03/15/apple-reaches-490-million-settlement-over-tim-cooks-china-sales-comments-.html