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Apple (AAPL) has agreed to settle $490M with investors to resolve claims that CEO Tim Cook hid declining iPhone demand in China.

In 2019, Apple was accused of hiding the impact of the U.S.-China trade war on iPhone sales in China, battery discounts and production cuts. Following this, $AAPL significantly fell, and Apple faced a lawsuit from investors.

On November 1, 2018: Tim Cook stated that Apple faced sales pressure in some countries, and China wasn't in this group.

On January 2, 2019: Apple revealed a $9B cut in revenue forecast due to U.S.-China trade tensions.

On January 3, 2019: Following this news, $AAPL fell 10%.

On April 16, 2019: Investors filed a suit against Apple for misleading about iPhone sales and business prospects in China.

In November 2018, Apple projected high revenue expectations for 2019 and announced they were experiencing sales pressure in Brazil, India, Russia, and Turkey, but China was not among these countries.

Despite assurances of strong demand, Apple revealed in January 2019 that in Q1 the revenue was cut by $9B due to weak iPhone sales in China. This was the first revenue downgrade since the iPhone's launch in 2007. 

Moreover, this decline was attributed to the negative impact of the U.S.-China trade war, cheaper battery replacements reducing new iPhone sales, and competition from more affordable Chinese smartphones.

Following this disclosure, $AAPL fell 10%.

After that, in 2019, Apple was sued by shareholders for misleading about its iPhone sales and business prospects in China.

Apple recently decided to resolve the suit and settle $490M with investors to end all allegations related to the China sales and Tim Cook's comments.

If you were damaged due to this situation, you can file for a payout and get your share of the settlement. You can check if you are eligible and other details in the FAQ section below.

Apple Inc

All persons who purchased or otherwise acquired the publicly traded securities of Apple Inc., including purchasers of Apple Inc. call options and sellers of Apple Inc. put options, during the period from November 2, 2018, through January 2, 2019, inclusive.

Do I have to sell securities to be eligible?

No, if you have purchased securities within the class period, you are eligible to participate.

You can participate in the settlement and retain (or sell) your securities.

The final payout amount depends on your specific trades and the number of investors participating in the settlement.

If 100% of investors file their claims - the average payout will be $1.33 per share. Although typically only 25% of investors file claims, in this case, the average recovery will be $5.32 per share.

The entire process usually takes 4 to 9 months after the claim deadline. But the exact timing depends on the court and settlement administration.

11thestate is an investor recovery company, we help investors to track and collect securities class action settlements. We will:

Audit the claim and make sure you get the maximum possible payout

File a claim with the settlement administration

Correspond with the settlement administration to resolve emerging issues

Deliver payout directly to your brokerage account

There is no upfront cost, but we will deduct 20% of the recovered amount as a commission for our services.

Accepting Late Claims

Mismanagement

Misleading Statements

Omissions

Directors

Management

Apple (AAPL) $490 Million Investor Settlement Over Tim Cook's China Sales Comments

apple-investor-settlement

Stocks

Long

Alphabet (GOOG) recently agreed to pay $350M to settle claims from shareholders. The settlement resolves claims that Google+ had security issues, leading to the massive exposure of users' private data.

Outline

Back in 2018, Alphabet was accused of hiding a major security flaw in its Google+ social network. This exposed users' private data to third parties between 2015 and March 2018. Following this news, $GOOG fell significantly, and Alphabet faced a lawsuit from shareholders.

Timeline

Between 2015 and March 2018: A glitch in Google+'s software allowed outside developers to access personal profile data of users who hadn't chosen to share it publicly.

On October 2018: The Wall Street Journal revealed that Google found a flaw in Google+'s software in March 2018, which exposed users' personal data to third parties.

On October 10, 2018: After the news came out, $GOOG fell by almost 6%.

On October 11, 2018: Google faced a lawsuit from investors.

In October 2018, The Wall Street Journal revealed that in March of the same year, Google found a flaw in its Google+ social network that exposed users' personal data to third parties.   

Between 2015 and March 2018, this flaw allowed outside developers to access the personal profile data of users who hadn't chosen to share it publicly.   

On October 10, 2018, following the disclosure of the security issues, $GOOG dropped by nearly 6%. 

Subsequently, Alphabet faced a lawsuit from shareholders who claimed that the company failed to disclose the massive security breach and that its security measures were inadequate.  

Alphabet has agreed to pay $350M to settle claims from shareholders, resolving all allegations related to the Google+ security issues.   

Alphabet Inc Class C

All persons that purchased or otherwise acquired Alphabet Class A and/or Class C stock during the period from April 23, 2018, through April 30, 2019, inclusive.

Alphabet (GOOG) Google+ $350M Settlement

alphabet-investor-settlement

Zoom recently agreed to pay $150M to settle claims from investors. The settlement resolves claims that Zoom hid problems with its software encryption and shared personal information with third parties.

Outline

Back in 2020, Zoom was accused of hiding problems with its software encryption, vulnerability to hackers, and sharing personal information with third parties. Much news has been reported on significant flaws in Zoom's data privacy and security measures. Following this, $ZM significantly fell, and Zoom faced a lawsuit from investors.

Timeline

On July, 2019: News reported that Zoom's software had security issues related to encryption.

On March 26, 2020: Press releases revealed that user data was vulnerable to third parties, including Facebook.

On March 27, 2020: After this news came out, $ZM fell 19%.

On May 18, 2020: The stockholder filed a suit against Zoom for misleading people about its encryption and security measures.

On July 12, 2023: Zoom reached an agreement to resolve investors’ claims for $150 million.

Background

In July 2019, reports came out about major security problems with Zoom's software encryption, raising concerns about its ability to protect user data.

Despite these concerns, Zoom claimed it had full end-to-end encryption. However, it was found that Zoom was using transport encryption, which is less secure. Further news revealed that Zoom exaggerated its encryption capabilities, making user data vulnerable to third parties, including Facebook.

On March 27, 2020, after these security issues were disclosed, $ZM dropped by 19.62%. 

After that, in 2020, Zoom was sued by shareholders who claimed the company misled them about its data privacy and security, especially its encryption.

What can investors expect now?

Zoom has agreed to pay $150M to settle claims from investors to resolve all the allegations related to the security problems. 

If you were damaged due to this situation, you can file for a payout and get your share of the settlement. You can check if you are eligible and other details in the FAQ section below.

Zoom Video Communications Inc

All persons that purchased or otherwise acquired Zoom Common Stock and/or Zoom Option Contracts between April 18, 2019, and April 6, 2020, inclusive, and were damaged thereby.

If 100% of investors file their claims - the average payout will be $3.08 per share. Although typically only 25% of investors file claims, in this case, the average recovery will be $12.32 per share.

Stipulative Settlement

Failure to Disclose

Zoom Video Communications (ZM) $150M Shareholder Settlement

zoom-shareholder-settlement

Investors have reached a $47 million settlement with Novavax. They claim the company made false and misleading statements about its COVID-19 vaccine production and regulatory timeline. Novavax is accused of overstating its manufacturing capabilities and not revealing the production delays that affected the approval of its vaccine, NVX-CoV2373. This led to financial losses for investors who bought shares during the specified period.

The lawsuit focuses on allegations that Novavax's leadership misled the public about the company’s ability to meet its regulatory goals for the COVID-19 vaccine. Despite internal issues, Novavax continued to reassure investors that the production was on track. However, in October 2021, Novavax admitted to delays in its Emergency Use Authorization (EUA) application, causing a drop of 14.7% in the stock price.

February 24, 2021: Novavax makes optimistic public statements about its COVID-19 vaccine progress.

October 19, 2021: Novavax announces delays in regulatory approval due to production issues.

November 12, 2021: A class-action lawsuit is filed, accusing Novavax of misleading investors.

December, 2023: Novavax agreed to a $47 million settlement with investors.

Novavax gained attention during the COVID-19 pandemic with its vaccine candidate, NVX-CoV2373. As the vaccine race intensified, Novavax's stock surged in value. The company repeatedly told investors it was on track to get Emergency Use Authorization (EUA) for the vaccine. However, significant production challenges and supply chain disruptions were causing delays, which the company did not disclose.

Throughout 2021, company executives, including CEO Stanley Erck, made statements that reassured investors about the progress of the vaccine. However, behind the scenes, the company was grappling with production quality issues that severely impacted its ability to meet regulatory deadlines. These undisclosed issues created a false sense of confidence for investors.

On October 19, 2021, Novavax publicly admitted that it would miss the anticipated approval timelines due to manufacturing problems. This revelation caused a steep decline in Novavax's stock price, with investors suffering significant losses. On May 10, 2021, the stock dropped by 9% and an additional 13.9% following the investor call. Further delays on August 5, 2021, led to a 19% decline. Then, on October 19, 2021, a report on manufacturing issues triggered another 14.7% drop. In total, these events contributed to more than a 40% reduction in the stock's value during this period. As a result, they filed a class-action lawsuit against Novavax, claiming that the company misrepresented its capabilities and downplayed risks related to vaccine production.

Novavax has agreed to a $47 million settlement with investors to resolve claims that it misled them about the company’s COVID-19 vaccine production and regulatory timeline.

Novavax Inc

All persons who purchased or otherwise acquired the publicly traded common stock of Novavax, Inc. during the period from May 11, 2021 through October 19, 2021, inclusive, and were damaged thereby.

If 100% of investors file their claims - the average payout will be $1.24 per share. Although typically only 25% of investors file claims, in this case, the average recovery will be $4.96 per share.

You can use 11thestate to claim payout, just create your application here: https://11thestate.com/cases/novavax-shareholder-settlement

11thestate will handle the paperwork and deliver payout to your brokerage account.

Novavax (NVAX) $47M Investor Settlement over COVID vaccine promises

novavax-shareholder-settlement

Under Armour (UA and UAA) has agreed to settle for $434M with investors to resolve claims that it misled them about revenue growth and business prospects.

In 2017, Under Armour claimed it could maintain over 20% revenue increases. However, these claims were later questioned following weaker-than-expected earnings reports and executive resignations. Following this, $UA and $UAA dropped and Under Armour faced a lawsuit from investors.

On April 21, 2016: Under Armour released its Q1 2016 earnings, highlighting robust revenue growth and projecting strong future sales.

On January 31, 2017: Under Armour announced weaker-than-expected Q4 earnings and the unexpected resignation of its CFO.

On the same day, its stock price dropped 26%. 

On February 3, 2017: Shareholders filed a suit against Under Armour.

On April 21, 2016, Under Armour announced strong earnings for the Q1, making it the 26th quarter in a row with over 20% revenue growth.

The company said it expected to keep growing in 2016 despite internal challenges like excess inventory and the bankruptcy of a major retailer, The Sports Authority.

By January 31, 2017, the truth came out when Under Armour announced weaker-than-expected earnings for Q4 2016 and the resignation of CFO Lawrence Molloy.

This news caused the stock price to drop 26% on January 31, 2017.

On February 10, 2017, a shareholder sued the company, claiming it had misled investors about its financial health and business prospects.

Under Armour (UA and UAA) has agreed to settle for $434M with investors to resolve claims that it misled them about its revenue growth and business prospects.

Under Armour Inc C

All persons who purchased or otherwise acquired Class A and Class C common stock of Under Armour between September 16, 2015 and November 1, 2019.

Find out how class action settlements work in this article. 

Accepting Claims

Financial Misrepresentation

Under Armour (UA and UAA) $434M Investor Settlement

underarmour-investor-settlement

Oatly (OTLY) agreed to settle $9.25M with shareholders to end claims over exaggerating uniqueness and China success.

In 2021, Spruce Point Capital claimed that Oatly exaggerated its financials and overstated its growth in China. This article also caused numerous reports exposing major issues in Oatly's finances and business practices. Following this, $OTLY significantly fell, and Oatly faced a lawsuit from investors.

On July 14, 2021: Spruce Point Capital accused Oatly of financial misstatements and exaggerating growth in China.

On July 14, 2021: Following this report, $OTLY fell 2.8%.

On July 15, 2021: Further news supported the allegations in the Spruce Point report.

On July 15, 2021: After that, $OTLY fell again by 5.36%.

On July 26, 2021: Stockholders filed a lawsuit against Oatly for misleading investors about its financial health, sustainability practices, and growth in China.

Oatly highlighted strong financial performance and impressive growth in China as key advantages for its U.S. IPO. 

However, on July 14, 2021, Spruce Point Capital Management released a report accusing Oatly of manipulating its financial metrics and overstating revenue, gross margins, and market share. 

It also claimed that Oatly exaggerated its sustainability by using old studies and only showing positive data, ignoring negative effects like high water usage 

The report accused Oatly of exaggerating its growth in China, while Oatly claimed a 450% sales growth and more than 10000 cafes in mainland China, SEC filings indicated only 8000 to 8200 locations. 

Moreover, it was said that Oatly's Maanshan facilities were delayed, not nearly operational as claimed, which raised doubts about Oatly's reported growth.

Following this report, $OTLY dropped by 2.8%.

Further investigation from CNBC and Fortune also found major issues with Oatly’s financial reports and business practices. These media investigations supported Spruce Point's claims, raising more questions about Oatly's financial practices and business claims.

Following that, in July 2021, Oatly was sued by investors who claimed the company misled them about its financial health and reporting practices.

Oatly Group AB  ADR

All Persons who purchased or acquired Oatly ADS between May 20, 2021 and November 15, 2021, inclusive, or otherwise pursuant to Oatly's Offering Documents, and were damaged thereby; and (ii) all Persons who purchased or acquired call options on Oady ADS Shares or sold put options on Oady ADS Shares during the Class Period or otherwise pursuant to Oady's Offering Documents and were damaged thereby.

Oatly (OTLY) $9.25M Settlement Over Financial Mirepresentation and China Growth Issues 

oatly-investor-settlement

Ginkgo Bioworks ($DNA) has decided to pay $17.75M settlement to investors to resolve claims related to the Scorpion Capital report and reliance on related parties for revenue.

In 2021, the Scorpion Capital published a report on Ginkgo Bioworks, calling Ginkgo one of the worst frauds in the last 20 years. Following this news, $DNA drastically fell, and Ginkgo faced a lawsuit from investors.

On October 6, 2021:  the Scorpion Capital released a report calling Ginkgo “colossal scam.”

Following this news, $DNA fell 12% the same day.

On November 16, 2021: Ginkgo disclosed a DOJ investigation into financial misconduct claims.

On November 18, 2021: $DNA stockholder filed a claim against Ginkgo based on all the undisclosed issues mentioned in the Scorpion's report.

On October 6, 2021, the Scorpion Capital released a report calling Ginkgo one of the worst frauds in the last 20 years, comparing it to previous major scams. 

The report stated that most of Ginkgo’s revenue comes from related-party transactions.

Scorpion also said that the investigation included 21 interviews with former and current employees of Ginkgo and its related-party "customers".

On November 16, 2021, Ginkgo disclosed a DOJ investigation into financial misconduct claims from the Scorpion report.

In response to the DOJ inquiry, Ginkgo organized an independent investigation, which concluded that “suggestion of fraud, reporting violations, accounting errors, or other wrongdoing contained in the short seller’s report were unfounded and importantly that no restatement of our financials was needed.” 

Ginkgo Bioworks has decided to pay $17.75M settlement to investors to resolve claims related to the Scorpion Capital report and its reliance on related parties for revenue.

Ginkgo Bioworks Holdings

All persons or entities who (1) purchased or otherwise acquired shares in Ginkgo, including by way of exchange SRNG shares, pursuant or traceable to the Proxy/Registration Statement that Defendants filed with the SEC on Form S-4 on May 14, 2021, and that was thereafter amended on Forms S-4/A on June 28, 2021, July 16, 2021, August 4, 2021, and August 9, 2021 and the body of which was incorporated into the final prospectus on Form 424(b)(3) filed on August 13, 2021; (2) were solicited to approve the Ginkgo Bioworks, Inc.- SRNG merger and to retain rather than redeem SRNG shares pursuant to the Proxy/Registration Statement; and/or (3) purchased or otherwise acquired in a public offering or on public markets securities of Ginkgo (including its predecessor SRNG) between May 11, 2021 and October 5, 2021, both dates inclusive.

If 100% of investors file their claims - the average payout will be $0.1 per share. Although typically only 25% of investors file claims, in this case, the average recovery will be $0.4 per share.

Ginkgo Bioworks (DNA) $17.75M Investor Settlement

ginkgo-bioworks-investor-settlement

Velodyne Lidar ($VLDR) has decided to settle $27.5M with investors to end claims related to the resignation of its founder and Chairman and its CMO.

In 2021, Velodyne removed its founder and Chairman, along with its CMO, after an investigation found their "inappropriate behavior." Following this news, $VLDR dropped, and Velodyne faced a lawsuit from investors.

On February 22, 2021: Velodyne announced it removed its founder and Chairman and its CMO after an investigation by the Audit Committee.

Following this news, $VLDR fell by 23% the next day.

On March 2, 2021: $VLDR stockholder filed a claim against Velodyne based on this undisclosed internal scandal. 

On February 22, 2021, Velodyne announced it removed its founder and Chairman and its CMO after an investigation by the Audit Committee.

The investigation found that Mr. Hall and Ms. Hall "behaved inappropriately with regard to board and company processes, and failed to operate with respect and honesty in their dealings with company officers and directors."

However, Ms. Hall described the situation as an ambush, stating they had no chance to defend themselves. 

After that, Velodyne responded, saying the Halls were informed of the investigation and had ample time to share their views before the board's decision.

Besides, Velodyne said that: “The Board also formally censured both Mr. Hall and Ms. Hall, and directed them both to receive appropriate remedial training.” 

Velodyne didn't disclose the details of the resignation and refused to provide any comments on this.

Velodyne recently decided to resolve the suit and settle $27.5M with investors to end claims related to this internal scandal and the Halls resignation.

Velodyne Lidar Inc

All persons who purchased Velodyne publicly traded securities between July 2, 2020 and March 17, 2021, inclusive.

Velodyne Lidar (VLDR) $27.5M Investor Settlement

velodyne-investor-settlement

Peloton (PTON) agreed to a $13.95M Settlement with Investors to end claims over hiding Tread+ safety issues which led to multiple incidents.

Peloton's Tread+ had caused a serious safety threat to children and pets, as multiple incidents of injury had occurred in addition to the tragic death of a child. 

$PTON did not prioritize safety since it knew about serious injuries and deaths from the Tread+ but did not recall or suggest a halt of its use. 

The Tread+ was declared a serious risk to public health and safety by the U.S. Consumer Product Safety Commission due to safety concerns, leading to an urgent recommendation for consumers with small children to cease using it. 

The CPSC also found that Tread+ users faced safety threats if they lost balance.

Peloton Interactive Inc

All persons who traded $PTON securities, including stocks, call, and put options, between September 11, 2020, and May 5, 2021, inclusive, and were damaged thereby, may be entitled to a payment from a class action settlement.

If 100% of investors file their claims - the average payout will be $0.029 per share. Although typically only 25% of investors file claims, in this case, the average recovery will be $0.116 per share.

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