U.S. Federal Judge Yvonne Gonzalez Rogers of Auckland, CA, during a class action lawsuit against Apple this week, dismissed most of the claims, but ruled that shareholders could blame the company for concealing the fall in iPhone demand between August 2017 to January 2019. Due to the concealment of the real situation with demand, especially in China, shareholders suffered losses of tens of billions of dollars.
The ruling said shareholders could sue CEO Tim Cook for reporting that iPhone was in high demand at a conference call for analysts on November 1, 2018, just a few days before Apple demanded from its largest contract partners to reduce smartphone production.
“In the absence of any natural disasters or other reasons, it is simply unbelievable that Kuku was not aware of the declining demand for iPhone in China just a few days before production cuts“Said Rogers.
The judge also said that Apple’s decision to stop reporting iPhone smartphone sales suggests that the defendants were expecting sales of mobile devices to decline.
A class action lawsuit led by the Rhode Island Public Servants Retirement System was filed in court after Cook unexpectedly lowered Apple’s quarterly earnings forecast to $ 9 billion on January 2, 2019, including due to trade tensions between USA and China.
For the first time since the launch of the iPhone in 2007, the Cupertino-based company reduced its revenue forecast. This led to a 10% drop in Apple shares and a decrease in the company’s market value by $ 74 billion.
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