ALBAWABA - In response to a class-action lawsuit, Apple and CEO Tim Cook have agreed a $490 million settlement. Cook was accused of inflating the demand for iPhones in China in 2018.
During a November 2018 earnings call, Cook was accused by investors of inflating demand for Apple products. This led to a substantial decline in the company's price when it missed revenue guidance by up to $9 billion in January 2019.
Apple denied breaking any US securities laws on Friday, but it did not comment.
District Judge Yvonne Gonzalez Rogers must approve the preliminary settlement, which was filed to the U.S. District Court in Oakland, California, on Friday, March 15, according to CNBC.
The largest securities fraud class-action settlement for Apple is pending approval from the federal court overseeing the case in California.
The story started on January 2, 2019, when the tech giant unexpectedly revealed that it has cut its quarterly revenue projection by up to $9 billion, blaming trade concerns between the United States and China.
Cook gave investors reassurance on November 1, 2018, on a conference call with analysts, that China will not be badly impacted by currency swings, even while other markets such as Brazil, India, Russia, and Turkey were experiencing sales pressure.
A proposal that called for Apple to reveal more information about its artificial intelligence research and the risks involved was backed by two significant Apple shareholders last month, but it was not successful.
