Apple lost $490 million because of CEO Tim Cook's statement

Apple has just completed a $490 million settlement of a class-action lawsuit stemming from CEO Tim Cook's misleading statements regarding iPhone sales in China in 2018.

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

CEO Tim Cook accused of misleading investors about real iPhone sales in China

Things aren't as rosy as Tim Cook said they would be. In January 2019, Apple reported that its global revenue was about $9 billion lower than expected in its most recent fiscal quarter, largely due to the business situation in China. This marked the first time since the iPhone's launch (June 2007) that the "tech giant" had to lower its revenue forecast.

That left investors "on edge" and the result of a 10% drop in stock value was $70 billion wiped off the hands of Apple stock holders.

Apple initially denied that CEO Tim Cook intended to mislead investors with his statements, but the four-year-long litigation has become increasingly tiresome. The company finally decided to settle the case once and for all. Part of the pressure also came from the fact that the district judge who is handling the lawsuit between Apple and game company Epic, Yvonne Gonzalez Rogers, just rejected Apple's request to dismiss and set a hearing for September 9.

Judge Rogers will oversee a hearing on April 30 to discuss a settlement between Apple and the investors who filed the class action lawsuit. Investors who bought Apple stock in late 2018 could receive a portion of the $490 million payment, minus $122 million, or 25 percent, in court fees.

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