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AAPL.US
id: 1137

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

N.D. California
Court
4:19-cv-02033
Case number
02 Nov 2018
Class period Start
02 Jan 2019
Class period End
Apple (AAPL) has agreed to settle $490M with investors to resolve claims that CEO Tim Cook hid declining iPhone demand in China.

Case Details:

On November 1, 2018, Cook said that while Apple was feeling sales pressure in countries like Brazil, India, Russia, and Turkey due to currency weakness, he didn't include China in that group.
  • Shortly after, Apple asked suppliers to cut production.
On January 2, 2019 Apple suddenly revealed a $9B cut in revenue forecast due to U.S.-China trade tensions.

This was the first revenue downgrade since the iPhone's launch in 2007.

The next day, $AAPL plummeted by 10%, causing a loss of $74B in market value.

Based on these events, Apple and its leaders were accused of hiding or misleading about the following details:
  • U.S.-China trade tensions hurt iPhone demand and pricing in China.
  • Apple's discounted battery replacements slowed iPhone sales growth.
  • Apple reduced production orders and prices for 2018 iPhone models, while withholding unit sales data to hide declines.
Apple has now decided to end all allegations related to the China sales and Tim Cook's comments about it by paying a $490M settlement to investors.
Alleged Offence
Mismanagement
Misleading Statements
Omissions
Suspected Party
Directors
Management
Security Type
Stocks
Trade Direction
Long
Payout per Share
1.33
Filing date
23 June 2020
Plaintiffs
City of Roseville Employees' Retirement System
Attorneys
Labaton Sucharow LLP, Robbins Geller Rudman & Dowd LLP
Defendants
Timothy D. Cook, Luca Maestri
Judge
Yvonne Gonzalez Rogers
Settlement agreement date
2024-03-15
Trades matching type
FIFO
+$490,000,000
Total Settlement Amount

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Apple Inc

Apple Inc. designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories worldwide. The company offers iPhone, a line of smartphones; Mac, a line of person...

    Ticker
    AAPL.US
    ISIN
    US0378331005
    CIK
    320193
    Sector
    Technology
    Industry
    Consumer Electronics
    Country
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