Apple has settled with its shareholders for almost $490 million in a class-action lawsuit, a sum close to $450 million. The tech giant allegedly misled investors by not disclosing the declining iPhone demand in China.
Apple's CEO Tim Cook reportedly mentioned during an investor call in November 2018 that sales of the new iPhone in Brazil, India, Russia, and Turkey were disappointing, but he excluded China from that list as per Reuters. However, a few days later, Apple allegedly instructed suppliers to reduce China's production, leading to a $9 billion revenue shortfall in the following quarter. Consequently, Apple's shares plummeted by 10 percent, causing a $74 billion loss in the company's value.
Shareholders claim that Cook intentionally withheld information, while Apple refutes the allegation of misleading its investors. Despite Apple's attempt to dismiss the lawsuit last year, the court denied the request. The settlement, as reported by Document Cloud, aims to avoid further legal complications as stated by Fortune. Shareholders who acquired Apple stock during the disputed period can claim a portion of the settlement. The trial was initially set for September this year.
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