A federal judge said that Apple might be facing a lawsuit due to this
A federal judge in the United States said that Apple might be facing a lawsuit claiming it “fraudulently” hid falling demand for iPhones in China.
This, as U.S. District Judge Yvonne Gonzalez Rogers on Tuesday ruled that shareholders can file a lawsuit against Apple over CEO Tim Cook’s comments about promoting a strong iPhone demand during the company’s fiscal Q4 2018 earnings call.
According to U.S. District Judge Yvonne Gonzalez Rogers, it was “implausible” that Apple CEO Tim Cook wouldn’t have known that the demand for iPhones in China was “falling mere days before cutting production lines”, adding that a decision by the company to stop reporting unit sales for iPhones probably suggested that Apple’s expected unit sales to decline.
In a report on Reuters, the said complaint was led by the Employees’ Retirement System of the State of Rhode Island and it came after Tim Cook unexpectedly decreased the company’s quarterly revenue forecast by up to USD 9 billion in part due to trade tensions between the United States and China.
As per the report, it was the first time since the 2007 iPhone launch that Apple had cut its revenue forecast as the company’s stock fell 10 percent the next day, removing USD 74 billion of market value.
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