Apple settles US$490 million over CEO's comments on sales in China

Apple settles US$490 million over CEO's comments on sales in China

The preliminary agreement was filed Friday in U.S. District Court in Oakland, California, and requires a judge's approval.

Apple reached a $490 million settlement to resolve a class-action lawsuit alleging that the CEO, Tim Cook, had defrauded shareholders by hiding falling demand for iPhones in China.

The preliminary agreement was filed Friday in U.S. District Court in Oakland, California.and requires the approval of a judge.

The lawsuit stemmed from Cook's comment on a Nov. 1, 2018, analyst call. that although Apple was facing sales pressure in markets such as Brazil, India, Russia and Turkey, where currencies had weakened, “I wouldn't put China in that category.”

On January 2, 2019, Apple unexpectedly cut its quarterly revenue forecast by up to $9,000, blaming trade tensions between the United States and China.. His shares fell 10% the next day, erasing some US$74 billion in market value.

Manzana and his lawyers They did not immediately respond to requests for comment.