Apple has settled a lawsuit for $490 million, initially brought forward by Norfolk County Council. The litigation accused Apple and its CEO of misleading investors by not disclosing reduced iPhone demand in China, leading to financial losses for shareholders including a pension fund overseen by the council.
The Norfolk Pension Fund expressed satisfaction with the outcome, emphasizing its role as a protector of pensions for many families and its commitment to act against fraud affecting its members’ investments.
The lawsuit revolved around statements made by Apple’s CEO in November 2018, suggesting that China was not experiencing sales pressure. This contradicted a subsequent revenue forecast downgrade in January 2019 due to US-China tensions, which negatively impacted Apple’s stock value.
Reports also surfaced that Apple had halted additional production lines for the iPhone XR. The plaintiffs, investors who purchased shares between November 2018 and January 2019, claimed losses due to the reassurances given in November.
Initially initiated by the city of Roseville, Norfolk County Council later led the suit. Despite Apple contesting the case, which was slated for trial, the preliminary settlement filed in Oakland, California’s U.S. District Court, awaits judicial approval, eliminating the need for a trial.
The specific share of the settlement for Norfolk County Council is yet to be disclosed. With Apple’s last fiscal year net income at $97 billion, this settlement represents just under two days of profit for the company.
