Apple has just completed a settlement of a class action lawsuit, costing $490 million. The cause stems from CEO Tim Cook's misleading statement regarding iPhone sales in the Chinese market in 2018.
Specifically, at a meeting with investors in November 11.2018, Apple CEO said sales of the newly launched iPhone model are off to a "good start" in China. But when the truth was revealed, the company's shares lost 10% of their value in one day, according to AP.
CEO Tim Cook was accused of misleading investors about the actual sales of the iPhone in China
Everything is not at all "rosy" like what Tim Cook said. In January 1.2019, Apple said its global revenue was about 9 billion USD lower than expected in the most recent fiscal quarter and the reason was mainly due to the business situation in China. This event marks the first time since the iPhone launched (June 6.2007), this "technology giant" has had to lower its revenue forecast.
That made investors "sit still" and as a result of the 10% decline in stock value, $70 billion was "swept away" from the hands of those holding Apple shares.
Initially, Apple denied that CEO Tim Cook intended to deceive investors with his statements, but the lawsuit that lasted more than 4 years made the company even more tired. In the end, the company decided to resolve the case thoroughly. Part of the pressure also comes from the fact that district judge - Yvonne Gonzalez Rogers - who is taking over the lawsuit between Apple and game company Epic, has just rejected Apple's request to dismiss and set a trial for September 9.9. .
Judge Rogers will oversee a hearing on April 30.4 to discuss the settlement between Apple and the investors who filed the above class action lawsuit. Investors who bought Apple shares at the end of 2018 can receive a portion of the $490 million settlement after deducting $122 million (equivalent to 25%) in legal fees.
