Monday , January 18 2021

Apple has blamed the US lawsuit for securities fraud due to the sale of iPhone in China



Apple was charged with a new lawsuit for securities fraud to hide the decline in demand for iPhones, especially in China, which led to a one-day $ 74 billion slide in its market value after it became the truth of the truth.

The appeal filed on Tuesday requires compensation for investors who bought Apple shares in two months before Tim Cook's executive director on January 2 unexpectedly lowered Apple's quarterly revenue forecast for $ 9 billion, partly due to the intensified US-China trade war.

It was the first time since the launch of the iPhone since 2007 that Apple has lowered its revenue forecast.

Apple's share price fell 10 percent the following day, leaving the California-based Cupertino market value around 40 percent below the $ 1.1 billion top three months earlier.

Cook and chief financial officer Luke Maestri were also named as accused in the proposed class action. Apple did not respond immediately on Wednesday to the requests for comment.

The lawsuit was filed at a federal court in Oakland, California, by a retirement scheme for employees in the town of Roswell, a pension plan in Michigan.

It is represented by Robins Geller Rudman & Dood, Securities Specialist.

The complaint says the iPhone's demand is declining due to the tensions of the US and China and the increased desire of buyers to replace batteries in older iPhone, causing Apple to abolish orders from suppliers for new iPhones and reduce prices to reduce inventory.

But none of this was revealed when it was supposed to be, the complaint said, partly because Apple's decision of November 1, 2018 ceases to disclose the sale of iPhone devices.

Asked during a conference call that day on Apple's performance in emerging markets, Cook put pressure on sales in Brazil and India down, but said: "I will not put China in that category," the complaint said.

The lawsuit was filed the same day Apple settled all litigation with Qualcomm Inc. Their disputes focused mainly on Qualcomm's patents for mobile chips and how Apple should pay to use technology.

The case is the retirement scheme for the employees of the city of Roswell in Apple Inc. and others, the US District Court, the Northern District of California, No. 19-02033.


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