News from March 17 reports that Apple Inc. has agreed to pay $4.9 billion (approximately 35.2 billion CNY) to settle a class action lawsuit, according to state media.
Apple has submitted a preliminary settlement agreement to the district court and is awaiting the judge's approval.
The class action lawsuit dates back to December 2019, with Apple investors as plaintiffs. They accused Apple CEO Tim Cook of concealing the fact that the demand for iPhones in China was declining, thereby deceiving shareholders.
They argued that Cook's comments during the financial earnings call in November 2018 were overly optimistic about the company's sales forecasts, leading them to make incorrect investment decisions based on these statements.
Furthermore, Apple reduced its revenue forecast for the January 2019 quarter by $9 billion. This was the first time Apple had reduced its revenue forecast since the launch of the iPhone in 2007, and a few days later, it also notified suppliers to limit production.
However, Apple stated that the settlement agreement was in the interest of both parties and does not mean that the company or Cook admits to any wrongdoing.
