Apple lost $490 million due to CEO Tim Cook's statements.

Apple has just finalized a $490 million settlement in a class-action lawsuit stemming from misleading statements by CEO Tim Cook regarding iPhone sales in the Chinese market in 2018.

Specifically, at a meeting with investors in November 2018, Apple's CEO stated that sales of the newly launched iPhone model were "getting off to a good start" in China. But when the truth was revealed, the company's stock lost 10% of its value in a single day, according to AP.

CEO Tim Cook is accused of making misleading statements to investors about the true sales figures of iPhones in China.

Things weren't as rosy as Tim Cook had predicted. In January 2019, Apple announced that its global revenue was approximately $9 billion lower than expected in the most recent fiscal quarter, primarily due to business conditions in China. This marked the first time since the iPhone's launch (June 2007) that the tech giant had lowered its revenue forecast.

This caused investors to become extremely anxious, and the 10% drop in stock value resulted in $70 billion being wiped out from the hands of those holding Apple shares.

Initially, Apple denied CEO Tim Cook intended to mislead investors with his statements, but the lawsuit, which dragged on for over four years, became increasingly exhausting for the company. Ultimately, the company decided to pursue the matter decisively. Part of the pressure also stemmed from the fact that District Judge Yvonne Gonzalez Rogers, who is presiding over the lawsuit between Apple and Epic Games, recently rejected Apple's request to dismiss the allegations and scheduled a hearing for September 9th.

Judge Rogers will oversee the hearing on April 30 to discuss a settlement between Apple and the investors who filed the class-action lawsuit. Investors who purchased Apple stock in late 2018 may receive a portion of the $490 million settlement after deducting $122 million (25%) in legal fees.

Source link: https://thanhnien.vn/apple-mat-490-trieu-usd-vi-phat-ngon-cua-ceo-tim-cook-185240318160214223.htm