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AAPL.US
id: 1137

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

It is still possible to file a late claim. The court will decide whether to accept late claims or not.
N.D. California
Court
4:19-cv-02033
Case number
02 Nov 2018
Class period Start
02 Jan 2019
Class period End
04 Oct 2024
Claim deadline
Apple (AAPL) has agreed to settle $490M with investors to resolve claims that CEO Tim Cook hid declining iPhone demand in China.

Outline

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.

Timeline
  • 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.
Background

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.

What can investors expect now?

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.
Case Status
Accepting Late Claims
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
Administrator
Gilardi & Co LLC
Settlement agreement date
2024-03-15
Court hearing date
17 September 2024
Exclusion deadline
18 August 2024
Objection deadline
18 August 2024
Hearing deadline
17 September 2024
Attorney fee
$94,850,000
Class wide damages
$490,000,000
Trades matching type
FIFO
+$490,000,000
Cash Settlement Amount

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