Apple shareholders accuse CEO Tim Cook of hiding declining iPhone demand in China, resulting in billions of dollars in losses for investors.
|CEO Tim Cook. (Photo: AP)|
On November 4, District Judge Yvonne Gonzalez Rogers said shareholders led by a British pension fund sued Apple for the comments of CEO Tim Cook on January 1, 2018. When analysts mentioned Apple’s sales pressure in some emerging markets, Cook said, “China will not be included in this category.”
However, just a few days later, Apple notified its suppliers to limit production and on January 2, 2019, the company unexpectedly lowered its forecast for maximum revenue of $ 9 billion. CEO Cook blamed the US-China trade tensions in part. This is the first time the “defective apple” has lowered its revenue forecast since the iPhone was born in 2007. Its shares fell 10% the following day, erasing $ 74 billion of market value.
Apple and Tim Cook claim there is no evidence that they defrauded or deliberately defrauded the plaintiff.
In the 23-page decision, Judge Rogers said shareholders had rightly accused Cook’s statements in his calls to analysts about China as false and misleading. According to the judge, Mr. Cook may not have a specific understanding of the “signs of trouble” in China that the company has begun to note, but quite unbelievable if he is completely opaque about trade tensions and impact. potential for Apple.
The plaintiff concludes that CEO Cook knows about the risks of talking about China and that he did not give a naive comment.
Du Lam (According to Reuters)
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