(AmericanProsperity.com) – Apple has to pay a settlement of $490 million in order to settle a lawsuit that was brought to them by the United Kingdom.
The lawsuit claimed that Chief Executive Tim Cook misled investors about a lack of iPhone sales from China which showed in the company’s revenue forecast. The Norfolk County Council said that Apple’s actions affected their fund and therefore organized and presented the lawsuit.
“We are proud of this recovery for investors,” said a spokesperson for the Norfolk Pension Fund, he continued, “We are mindful that we are stewards of pensions relied upon by thousands of families and individuals. When and where it’s warranted, we will take decisive action to recover losses when our participants’ investments are harmed by fraud.”
The settlement filed said that Apple was not honest about how its iPhones were performing in China in 2018, which is their largest market. Tim Cook allegedly signaled that the iPhones were doing great in the Chinese market, which made investors more likely to step in on a deal. However, when it came to their revenue reports, it showed that Apple was billions under their projected target.
The drop in revenue was linked to lower sales in China and following this, Apple’s stock price plunged. Ultimately, Apple denied that Cook deceived investors by giving them false hope in the Chinese iPhone market. However, Apple said, after four years of going through the lawsuit, that they would just pay the settlement amount to avoid “overly burdensome, expensive, and distracting hassle.”
Originally, Apple tried to dismiss the case but a judge, Yvonne Gonzalez Rogers, denied their dismissal and will now be approving the settlement fund at the end of April. Many stockholders for Apple who held part of the company during that time will be eligible for a percentage of the settlement. It’s said that the settlement amount isn’t even close to what Apple pocketed during 2018.
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