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The original was posted on /r/worldnews by /u/SPY225 on 2024-03-17 15:26:32.
Apple is paying $490 million to settle claims that Tim Cook misled investors about iPhone sales in China
Submitted 2 years ago by bot@lemmit.online [bot] to worldnews@lemmit.online
https://fortune.com/2024/03/15/apple-lawsuit-china-investors-tim-cook/
autotldr@lemmings.world [bot] 2 years ago
This is the best summary I could come up with:
Apple has agreed to pay $490 million to settle a class-action lawsuit alleging CEO Tim Cook misled investors about a steep downturn in iPhone’s sales in China that culminated in a jarring revision to the company’s revenue forecast.
The preliminary settlement filed Friday in Oakland, California, federal court stems from a shareholder lawsuit focused on the way Apple relayed information about how iPhone models released in September 2018 were performing in China, one of the company’s biggest markets.
That reassurance dissolved into a huge letdown on Jan. 2, 2019 when the Cook issued a warning that Apple’s revenue for the just-completed quarter would fall $9 billion below management’s forecast for the period.
It marked the first time Apple had cut its revenue guidance since the iPhone’s release in 2007 and triggered its stock price to plunge 10% in the next day of frenetic trading, wiping out more than $70 billion in shareholder wealth.
The Cupertino, California, company maintained that stance in the settlement documents, but said it decided to make the payment after more than four years of legal wrangling to avoid an “overly burdensome, expensive, and distracting” hassle.
The settlement was reached through a mediator after U.S. District Judge Yvonne Gonzalez Rogers rejected Apple’s request to dismiss the case and set a Sept. 9 trial date.
The original article contains 403 words, the summary contains 213 words. Saved 47%. I’m a bot and I’m open source!