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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.

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
Stipulative Settlement
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
Attorney fee
$94,850,000
Class wide damages
$490,000,000
Trades matching type
FIFO
+$490,000,000
Cash Settlement Amount

Frequently Asked Questions

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
    USA
    Address
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