March 15 (UPI) — Apple has agreed to pay $490 million to settle a class-action lawsuit that accused CEO Tim Cook of deliberately withholding pertinent information on sales that led to an investor loss of billions of dollars, according to a proposed settlement request filed in Oakland County, Calif., federal court.
A group of investors claimed in the lawsuit that Cook made false statements that caused Apple stock to trade at artificially high prices and they alleged it was a violation of securities laws.
Apple denied it broke the law, but said in the filing it agreed to settle, “in recognition that further litigation will be protracted, overly burdensome, expensive, and distracting.”
In a late 2018 earnings call, Cook said that while there were countries where iPhone sales were down, “I would not put China in that category.”
Not long after that call, Apple allegedly instructed suppliers to reduce production. That was followed by revising its revenue down in the first quarter 2019.
Apple said then that while anticipating challenges in key emerging markets it “did not foresee the magnitude of the economic deceleration,” especially in China.
Britain’s Norfolk County Council is the lead plaintiff in the suit. The council alleged the securities law violation, accusing Apple of making false and misleading statements about its performance in China.
According to Apple Insider, the $490 million settlement represents less than a day of earnings.
