Apple (AAPL) $490 Million Investor Settlement Over Tim Cook's China Sales Comments
Apple (AAPL) has agreed to settle $490M with investors to resolve claims that CEO Tim Cook hid declining iPhone demand in China.
Outline
In 2019, Apple was accused of hiding the impact of the U.S.-China trade war on iPhone sales in China, battery discounts and production cuts. Following this, $AAPL significantly fell, and Apple faced a lawsuit from investors.
Timeline
On November 1, 2018: Tim Cook stated that Apple faced sales pressure in some countries, and China wasn't in this group.
On January 2, 2019: Apple revealed a $9B cut in revenue forecast due to U.S.-China trade tensions.
On January 3, 2019: Following this news, $AAPL fell 10%.
On April 16, 2019: Investors filed a suit against Apple for misleading about iPhone sales and business prospects in China.
Background
In November 2018, Apple projected high revenue expectations for 2019 and announced they were experiencing sales pressure in Brazil, India, Russia, and Turkey, but China was not among these countries.
Despite assurances of strong demand, Apple revealed in January 2019 that in Q1 the revenue was cut by $9B due to weak iPhone sales in China. This was the first revenue downgrade since the iPhone's launch in 2007.
Moreover, this decline was attributed to the negative impact of the U.S.-China trade war, cheaper battery replacements reducing new iPhone sales, and competition from more affordable Chinese smartphones.
Following this disclosure, $AAPL fell 10%.
After that, in 2019, Apple was sued by shareholders for misleading about its iPhone sales and business prospects in China.
What can investors expect now?
Apple recently decided to resolve the suit and settle $490M with investors to end all allegations related to the China sales and Tim Cook's comments.
If you were damaged due to this situation, you can file for a payout and get your share of the settlement. You can check if you are eligible and other details in the FAQ section below.
Frequently Asked Questions
All persons who purchased or otherwise acquired the publicly traded securities of Apple Inc., including purchasers of Apple Inc. call options and sellers of Apple Inc. put options, during the period from November 2, 2018, through January 2, 2019, inclusive.
No, if you have purchased securities within the class period, you are eligible to participate.
You can participate in the settlement and retain (or sell) your securities.
The final payout amount depends on your specific trades and the number of investors participating in the settlement.
If 100% of investors file their claims - the average payout will be $1.33 per share. Although typically only 25% of investors file claims, in this case, the average recovery will be $5.32 per share.
The entire process usually takes 4 to 9 months after the claim deadline. But the exact timing depends on the court and settlement administration.
11thestate is an investor recovery company, we help investors to track and collect securities class action settlements. We will:
Prepare documents for your payout
Audit the claim and make sure you get the maximum possible payout
File a claim with the settlement administration
Correspond with the settlement administration to resolve emerging issues
Deliver payout directly to your brokerage account
There is no upfront cost, but we will deduct 20% of the recovered amount as a commission for our services.