Apple Hit With Securities Fraud Lawsuit for Hiding iPhone Sales Drop

Apple is facing a class action lawsuit accusing the company of securities fraud for making false statements and failing to disclose adverse information regarding its business prospects. These actions allegedly led to an artificially inflated stock price.

Specifically, the lawsuit claims that Apple was not initially forthcoming about a drop in demand for the iPhone due to poor sales in China and the 2018 battery replacement program, both of which contributed to lower than expected ‌iPhone‌ sales in the first fiscal quarter of 2019.

iphonexr
Apple is also accused of hiding the fact that production orders from suppliers had been slashed and prices had been cut, Apple's decision not to provide unit sales for iPhones and other hardware is also cited as a method Apple used to cause stock prices to rise to $209 per share.

When Apple did reveal the dip in ‌iPhone‌ sales and announced that it would not make its quarterly revenue forecast, Apple's stock fell $15 per share from $157.92 on January 2 to $142.19 per share on January 3. According to the lawsuit, Apple knew its ‌iPhone‌ sales weren't on track months before the information was shared.

The lawsuit, filed by the City of Roseville employees' retirement fund, is aiming to recover damages on behalf of people who purchased Apple stock between November 2, 2018 and January 2, 2019. Tim Cook and Luca Maestri are both named as defendants.

Update: A second law firm has filed a class action lawsuit against Apple, which is essentially identical to the first lawsuit. It also accuses Apple of securities fraud for concealing the ‌iPhone‌'s decline in sales.

Tag: lawsuit

Top Rated Comments

ryanwarsaw Avatar
32 months ago
Some people sold their stock too low and now comes the crying.
Score: 39 Votes (Like | Disagree)
thadoggfather Avatar
32 months ago
The fish rots from its head: Tim Crook

Really don't like what the guys been doing over the years, stalling consumer technology progress.

Score: 32 Votes (Like | Disagree)
Baymowe335 Avatar
32 months ago
Looks like the market is devastated with AAPL up 2% today and marching higher again.

People get mad when then sell stock too low.

They didn’t “hide” anything. They told investors they would no longer report unit sales in 2019, which is their choice. You could sell if you thought that ruined the company (lol).

Tons of public companies don’t report metrics investors might like to know. Ever look at Google’s financials? Impossible to understand. No Pixel sales. Microsoft doesn’t report unit sales for their hardware and Samsung doesn’t even report Galaxy unit sales.
Score: 28 Votes (Like | Disagree)
cmaier Avatar
32 months ago
He is scum and a charlatan.
He’s a great philanthropic law-abiding citizen who has done more for the world than almost anyone posting here.
Score: 24 Votes (Like | Disagree)
AngerDanger Avatar
32 months ago
The fish rots from its head: Tim Crook
Let's try this again…



In this case, we're talking about the head that revolutionized Apple's supply chain, buying up millions of CNC machines the early 200s, and enabling Jony Ive's designs to be realized on a mass scale, right? Prior to Cook's intervention, Macs were made in multiple countries with parts being flown back and forth at various stages of assembly. A part from California would by flown to Amsterdam for additional work before being flown back to California.

Really don't like what the guys been doing over the years, stalling consumer technology progress.
Again, he's responsible for coordinating manufacturing that every tech company on the world has adopted as standard. I just got done with Ive's biography, and it seems to me that people advocating against Cook have a rather myopic view of Apple.

At the turn of the century, Apple was like every other tech company; engineers made things and then designers added their "skinned" them. Jobs returned a few days before Ive wanted to quit and reemphasized Apple's ethos: to make great products.

Everything was turned on its head. Function followed form; if the Mac mini were a couple mm larger, it could've housed a less expensive full-sized drive, but Ive and Jobs had twenty models constructed and liked the feeling of the ever-so-slightly-smaller design.

The unibody enclosures that are now characteristic of Apple products were only possible because of the manufacturing Tim secured, the complaints that Animoji and other superficial **** are taking focus away from functionality mirror those of people who believed that Apple's stupid attention to form inhibited function. And Apple's prices have always sucked; the Mac, the iMac, and the iPod were all extremely pricey relative to the competition and their own intended prices.

Nonetheless, Apple has pushed the industry forward, and each of Ive's reductionist designs are copied by all of the competition about half a decade later. No disk drive on the iMac, no CD drive on 2012 MacBooks, and no headphone jack on the iPhone. Some of these decisions were executed under Jobs and are now carried out by Tim.

tl;dr: you can put an "r" between "C" and "ook" all you want, you can claim you're thinking different (even though it's similar to a lotta thinking on this site), but that doesn't change the fact that the Animoji-obsessed, price gouging Tim Cook has pushed the industry forward and is partially responsible for all of Apple's success since the early 2000s.

Attachment Image
Score: 19 Votes (Like | Disagree)
oghowie Avatar
32 months ago
These lawsuits are so dumb.

What if I told you Apple stock is back at $200 now?
Score: 16 Votes (Like | Disagree)

Top Stories

iphone 12 colors 2021

iPhone 12 Colors: Deciding on The Right Color

Thursday November 5, 2020 8:35 am PST by
The iPhone 12 and iPhone 12 Pro arrived last October in a range of color options, with entirely new hues available on both devices, as well as some popular classics. The 12 and 12 Pro have different color choices, so if you have your heart set on a particular shade, you might not be able to get your preferred model in that color. iPhone 12 mini and iPhone 12 The iPhone 12 mini and iPhone 12...
original iphone

Phil Schiller Says iPhone Was 'Earth-Shattering' Ten Years Ago and Remains 'Unmatched' Today

Monday January 9, 2017 7:15 am PST by
To commemorate the tenth anniversary of the iPhone, Apple marketing chief Phil Schiller sat down with tech journalist Steven Levy for a wide-ranging interview about the smartphone's past, present, and future. The report first reflects upon the iPhone's lack of support for third-party apps in its first year. The argument inside Apple was split between whether the iPhone should be a closed...
iCloud General Feature

iCloud+'s New Custom Email Domain Feature Now Available in Beta

Wednesday August 25, 2021 7:48 am PDT by
Starting with iOS 15, iPadOS 15, and macOS Monterey, users with a paid iCloud+ storage plan can personalize their iCloud email address with a custom domain name, such as johnny@appleseed.com, and the feature is now available in beta. iCloud+ subscribers interested in setting up a custom email domain can visit the beta.icloud.com website, select "Account Settings" under their name, and select ...
iPhone 13 Dummy Thumbnail 2

Full iPhone 13 Feature Breakdown: Everything Rumors Say We Can Expect

Tuesday August 31, 2021 7:50 am PDT by
With the launch of Apple's iPhone 13 lineup believed to be just a few weeks away, we have compiled all of the coherent rumors from our coverage over the past year to build a full picture of the features and upgrades coming to the company's new smartphones. For clarity, only explicit improvements, upgrades, and new features compared to the iPhone 12 lineup are listed. It is worth noting that...
iPhone 13 Dummy Thumbnail 2

Kuo: iPhone 13 to Feature LEO Satellite Communications to Make Calls and Texts Without Cellular Coverage

Sunday August 29, 2021 7:39 am PDT by
The iPhone 13 will feature low earth orbit (LEO) satellite communication connectivity to allow users to make calls and send messages in areas without 4G or 5G coverage, according to the reliable analyst Ming-Chi Kuo. In a note to investors, seen by MacRumors, Kuo explained that the iPhone 13 lineup will feature hardware that is able to connect to LEO satellites. If enabled with the relevant...
macbook air deals

Deals: Amazon Drops Price of 256GB M1 MacBook Air to New Low of $849.99 ($149 Off)

Friday August 27, 2021 6:16 am PDT by
Amazon today introduced new low prices on the M1 MacBook Air for both 256GB and 512GB storage options. To start, you can get the 256GB model for $849.99, down from an original price of $999.00. Note: MacRumors is an affiliate partner with Amazon. When you click a link and make a purchase, we may receive a small payment, which helps us keep the site running. Only Silver and Gold are...
maxresdefault

New MacBook Pro Models Coming at WWDC, Suggests Leaker

Monday May 24, 2021 1:27 pm PDT by
New MacBook Pro models are coming at WWDC, according to leaker Jon Prosser who has a mixed track record when it comes to predicting Apple's plans. Subscribe to the MacRumors YouTube channel for more videos. Prosser provided no additional information, but there are new 14 and 16-inch MacBook Pro models in the works. The new MacBook Pros will feature the most radical redesign to the MacBook Pro ...
calculatorapp

iOS 11 Bug: Typing 1+2+3 Quickly in the Calculator App Won't Get You 6

Tuesday October 24, 2017 2:03 pm PDT by
A bug in the built-in Calculator app in iOS 11 is getting some major attention this week, despite the fact that it's been around since iOS 11 was in beta testing. At issue is a calculator animation that causes some symbols to be ignored when calculations are entered in rapid succession. You can try it for yourself: Type 1+2+3 and then the equals sign into the Calculator app quickly. Due to...
maxresdefault

'Being James Bond' Retrospective Will Be Free to Watch Through Apple TV App

Tuesday August 31, 2021 8:25 am PDT by
Update 9/7/21: "Being James Bond" is now available to watch through the Apple TV app. Ahead of the theatrical release of James Bond film "No Time To Die" on October 8 in the United States, a 45-minute retrospective titled "Being James Bond" will be available to watch for free through the Apple TV app, according to Deadline. The story from MGM is said to feature Daniel Craig reflecting ...
ted lasso notchless phone

No, That Notchless iPhone Spotted in 'Ted Lasso' Isn't the iPhone 13

Tuesday August 31, 2021 2:15 am PDT by
Recent sightings of a notchless iPhone in highly popular Apple TV+ comedy "Ted Lasso" have led to sensational headlines suggesting this is a canny bit of product placement on Apple's part and that the iPhone 13 will be notchless. In actuality – and this could go without saying – the phone in question is very likely just showing a poorly superimposed display added in post-production. Notchless ...