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.
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.
Popular Stories
Apple has announced that iOS 18.2, iPadOS 18.2, and macOS Sequoia 15.2 will be released today following more than six weeks of beta testing.
For the iPhone 15 Pro and iPhone 16 models, the update introduces additional Apple Intelligence features, including Genmoji for creating custom emoji, Image Playground and Image Wand for generating images, and ChatGPT integration for Siri. There is also ...
Apple today seeded the second release candidate versions of upcoming iOS 18.2, iPadOS 18.2, and macOS 15.2 updates to developers and public beta testers for testing purposes, a week after releasing the first RCs. The first iOS 18.2 RC had a build number of 22C150, while the second RC's build number is 22C151. Release candidates represent the final version of beta software that's expected to see a ...
Apple's forthcoming iPhone SE 4 will feature a single 48-megapixel rear camera and a 12-megapixel TrueDepth camera on the front, according to details revealed in a new Korean supply chain report.
ET News reports that Korea-based LG Innotek is the main supplier of the front and rear camera modules for the more budget-friendly ~$400 device, which is expected to launch in the first quarter of...
Apple seeded the release candidate version of iOS 18.2 today, which means it's going to see a public launch imminently. Release candidates represent the final version of new software that will be provided to the public should no last minute bugs be found, and Apple includes release notes with the RC launch.
The iOS 18.2 release notes provide a look at all of the new features that are coming...
Apple is set to release iOS 18.2 in the second week of December, bringing the second round of Apple Intelligence features to iPhone 15 Pro and iPhone 16 models. This update brings several major advancements to Apple's AI integration, including completely new image generation tools and a range of Visual Intelligence-based enhancements. There are a handful of new non-AI related feature controls...
Apple plans to remove the notch from the MacBook Pro in a few years from now, according to a roadmap shared by research firm Omdia.
The roadmap shows that 14-inch and 16-inch MacBook Pro models released in 2026 will have a hole-punch camera at the top of the display, instead of a notch. It is unclear if there would simply be a pinhole in the display, or if Apple would expand the iPhone's...
Despite being released over two years ago, Apple's AirPods Pro 2 continue to dominate the wireless earbud market. However, with the AirPods Pro 3 expected to launch sometime in 2025, anyone thinking of buying Apple's premium earbuds may be wondering if the next generation is worth holding out for.
Apart from their audio and noise-canceling performance, which are generally regarded as...
Norwegian payment service Vipps has become the world's first company to launch a competing tap-to-pay solution to Apple Pay on iPhone, following Apple's agreement with European regulators to open up its NFC technology to third parties.
Starting December 9, Vipps users in Norway can make contactless payments in stores using their iPhones. The service initially supports customers of SpareBank...