According to Reuters, Apple is willing to pay US$490 million (Note: currently about 3.528 billion RMB) to settle a class action lawsuit.
The lawsuit accuses Apple CEO Tim Cook of deceiving shareholders by concealing declining demand for iPhones in China.
Apple submitted a preliminary settlement agreement to the U.S. District Court in Oakland, California, on Friday and is awaiting approval from Judge Yvonne Gonzalez Rogers.
The class-action lawsuit dates back to December 2019. The plaintiffs are Apple investors who believe that Tim Cook’s comments during an earnings call in November 2018 were overly optimistic about the company’s sales expectations, leading them to base their decisions on these Statement that a poor investment decision was made.
The company cut its revenue forecast for the January 2019 quarter by $9 billion, and days later Apple notified suppliers to limit production.
This is the first time Apple has lowered its revenue forecast since launching the iPhone in 2007. The next day, Apple shares fell 10%, wiping $74 billion off its market value.
Apple said the settlement agreement was for the benefit of both parties and did not represent an admission of any wrongdoing by the company or Tim Cook. The $490 million settlement will be paid by Apple to resolve all related charges.
