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Apple Agrees to Pay $490M to Settle Lawsuit Alleging That Tim Cook Defrauded Shareholders
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There's no way Apple would have spent anywhere near a half billion in lawyers' fees on this case.
As any corporation would do, they evaluated the likely outcomes and decided that paying the half-billion dollar settlement was the least-expensive of those outcomes.
Tim Cook doesn't exactly exuding charisma either.
(This evaluation is completely unrelated to the "fire Tim Cook" rabble-rousing - just observing that Cook is also a bland wet fish)
Seriously why is this man still in a job?
Also well done Norfolk County Council!
Also well done Norfolk County Council!
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Cook overstated demand for Apple’s products in China only to miss the revenue mark by $9b sixty days later. Cook also cut iPhone production a few days after exaggerating the success of new iPhone models. Apple ran the numbers and decided to settle the securities fraud action. They probably know best.
Yep he is just riding what’s left of Steve’s wave.
While lawyers will always win, one of the members of the class was a county (state in the US) pension fund, so they'll get something. Source: https://www.bbc.co.uk/news/technology-68580235
Believe it or not Apple buys back like 300 Million dollars of it's stock almost every day!
Agreed. I know some people have said they don't get the Tim Cook hate but what do you actually think the strategy is for the next decade for Apple, just iterative updates of the same products? It's served Apple well for over a decade since Steve Job's passing but eventually you have to do something different.
The company seems rudderless at the moment and is clearly in need of new direction.
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That’s the only thing which Apple measures in Billions. 1/2 billion $$ are nothing if they can quietly pay them off and get back to business compared to worldwide loss of face if more worse things are brought forward in the court if the case prolongs. Apple’s lawyers with added Machine Learning AI algorithm must have deduced that paying 1/2 billion upfront.
Nothing, because you are never guaranteed any return on your investment.
Yeah, but this, the EU and then who know how many other litigation they have going on like the one wi Masimo....
It adds up at the end of the month.
It might not seems like a lot now, but it still hurt a company to lose money no matter what.
Would you be willing to send me 2% of your income each month? use I can give you my account number
This, every week it seems, another suit, fine or settlement. I understand they “make it back” quickly but it’s still money out the door.
To them it is probably worth it to give up millions to make billions though.
That's one costly oops.
And it doesn't seem he will be quitting anytime soon.
It always seems like yesterday but at this point Cook's tenure is almost the same length as Steve Jobs second go at Apple.
And it doesn't seem he will be quitting anytime soon.
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Ridiculous lawsuit. I don’t understand where the fraud was. Was the 11/1 quarter reporting 16% growth in China inaccurate? Was the guidance inaccurate? He came out in January early to update their projections, which was clearly driven by economic headwinds in China because it didn’t just affect Apple. I think around that time they also stopped reporting iPhone total numbers.
Apple's share price dropped around 25% between November 1, 2018 and January 31, 2019.
I remember this time — January was ugly — from about $220 to $145 in almost a straight line. Price today would be $680 without the split.
Apple's share price dropped around 25% between November 1, 2018 and January 31, 2019.
I remember this time — January was ugly — from about $220 to $145 in almost a straight line. Price today would be $680 without the split.
I hadn't really considered that the class action would include representatives from UK pension funds:
So the impact of what happened here would likely have a detrimental financial effect on ordinary UK citizens, purely from them having a pension from a Norfolk County Council job.
You're misrepresenting what happened. The first call, Tim Cook didn't overstate the demand. He shared raw data of the growth from the previous quarter. Now I guess you can say he "overstated" what the demand would be the next quarter, but it was just a forecast. It's not like they were lying about current demand. If anything, I think they were more transparent than they needed to be with their letter to investors, almost a full month before the earnings were announced.
I came here to say the same. 490M is an admission.
So everyone will get their $10 rebate check, and the lawyers will pocket the other $390 million...
Yup, clearly. I am sure the Board is preparing to fire Tim forthwith and bring in “new direction”. The stockholders are mutinous and storming the gates. Not to mention the savants on MR.