Apple settles lawsuit over misleading Tim Cook iPhone statement for $490 million

According to P.A., Apple today settled a class-action lawsuit for $490 million. The suit alleged that Apple CEO Tim Cook made a misleading statement about iPhone sales in China in 2018. Eventually, when the true situation of iPhone sales in the country was revealed, the title experienced a 10% drop in one day. Cook's original comment during a conference call with investors in November 2018 indicated that sales of the latest iPhone models, released last September, had gotten off to a good start in China.

But in reality, things weren't as rosy as Cook had said and in January 2019, Apple revealed that revenue was going to be $9 billion lower than expected for the just-completed fiscal quarter, and that most of the deficit was occurring in China. It was the first time since the iPhone's June 2007 launch that the tech giant had to lower its revenue forecast. And that didn't sit well with Apple investors who sent shares down 10% the day after Apple lowered its revenue forecast. This drop caused Apple shareholders to lose $70 billion.

Apple initially denied that Cook misled investors with his comments, but the company had grown increasingly tired of fighting the allegations for more than four years. As a result, the company decided to settle the matter. Additional pressure was put on Apple to resolve the issue after U.S. District Judge Yvonne Gonzalez Rogers, who presided over the Epic v. Apple case, refused Apple's request to dismiss the case and ruled set the trial date for September 9.