In the end, the cost will be passed on to those buying Apple products. Guess we'll be seeing Macs with 8GB memory for a little longer. 🤣
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Apple Agrees to Pay $490M to Settle Lawsuit Alleging That Tim Cook Defrauded Shareholders
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I am pretty sure that if my actions lost my employer nearly half a billion dollars I would be fired.
So Tim Cook accurately said iPhone growth was strong the previous quarter in China, then it slumped the next quarter. Am I missing something here?
If he said sales in China were starting to decline and then ended up being stronger than expected, people would've complained about missed opportunity to buy stock.
If he said sales in China were starting to decline and then ended up being stronger than expected, people would've complained about missed opportunity to buy stock.
Any investors? Nope, typically only US investors can benefit from a class action.
Yep, but members of the class action aren't necessarily current shareholders.
And again, non US-investors may pay double. They had the same losses, and now they're the ones paying for it.
lots of lawsuits involving Apple over like the last 4 years.
there goes that sneaky clean image.
there goes that sneaky clean image.
By that math, Apple makes $90B per year in profit?
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At this point, these lawyers have their own lawyers.
How does it work when shareholders sue? Unless they sold at a loss during that dip, they are suing themselves. Is that it? Only those who sold at the end of the dip are getting the settlement? If so, they are getting little compared to those who held on. It dipped down under $40 but now is over $170. Those who held on should thank Cook for "tricking" them.![]()
Apple has agreed to pay $490 million to settle a class action lawsuit alleging that Apple CEO Tim Cook defrauded shareholders by concealing falling demand for iPhones in China, according to Reuters, which cited a court filing today. The proposed settlement requires approval by U.S. District Judge Yvonne Gonzalez Rogers in California.
![Tim-Cook-iPhone-11-Pro.jpg]()
On a November 1, 2018 earnings call with analysts, Cook said Apple was facing pressure in emerging markets where local currencies were weakening, such as Turkey, India, Brazil, and Russia, but he did not include China in the list:Cook went on to say the following about China on the call:A few months later, in January 2019, Cook shared a letter to investors indicating that Apple's revenue for the fourth quarter of 2018 would be around $84 billion, lower than its original guidance of between $89 billion and $93 billion in the quarter. Apple ended up reporting revenue of $84.3 billion in the quarter on January 29, 2019.
Apple's share price dropped around 25% between November 1, 2018 and January 31, 2019.
In his letter, Cook said the Greater China region's slowing economy was largely to blame for Apple's revenue shortfall in the quarter:The letter added that lower-than-anticipated iPhone revenue, primarily in Greater China, accounted for the entire revenue shortfall:Investors alleged that Cook knew that iPhone demand was falling in China at the time of the November 2018 earnings call, but failed to disclose it. Apple has denied these allegations and has not admitted to any wrongdoing. Apple only agreed to the proposed settlement to avoid additional costs and time involved with litigation, the filing says.
Article Link: Apple Agrees to Pay $490M to Settle Lawsuit Alleging That Tim Cook Defrauded Shareholders
Sounds correct for net annual income:
Source: https://www.statista.com/statistics/267728/apples-net-income-since-2005/
I love Apple products, but this is the kind of news story (one of several lately) that takes the shine off the company. I hope Apple can get back on course.
They should hold an event for fines. "Our latest fine is the best one yet and we think you are going to love it!". They would then explain how they are paying it with money made from recycled paper and how they are saving the environment by selling computers with 8 GB of ram and 256 GB of storage in 2024.
Exactly what I was thinking - they accurately reported what was happening, in both cases, and shareholders actually sued them for it.
Appalling.
Jobs got alot of things right. Naming Tim Cook as his heir apparent wasn't one of them.
They have in house counsel like all big corporations. It’s not like they’re forking out fees like Tims getting a divorce.
Entities who purchased shares between November 2018 and January 2019 it looks like.
So did the whole NASDAQ. And both didn't recover until June 2019. Don't see how this could be blamed on Cook.
If their open letter talked about slumping sales and they didn't mention anything about China, maybe the shareholders would have a point. But that didn't happen. Apple was probably expecting a sales uptick with the Chinese New Year.
Anyway, this is a lesson not to put all your eggs in one basket in the stock market. Invest in index funds, invest in ETFs. And if you insist on picking individual stocks, diversify and pick a couple dozen of them.
Timmy Timmy...if he does this to the share holders imagine the customers!
No finance guy, but net income seems to be the bottom-line profit (total earnings minus total expenses), while there are other kind of profit after deducing specific expenses. Quoting from Investopedia "Net Income vs Profit" page:
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