U.S. District Judge Yvonne Gonzalez Rogers order Apple to face a proposed class-action lawsuit by shareholders led by a UK pension fund over the comment made by the CEO Tim Cook on Nov. 1, 2018, due to which hide the falling demand for iPhones in China, resulting in billions of dollars of investor losses.
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On Nov. 1, 2018, Tim Cook said that “analyst call that while Apple was facing sales pressure in some emerging markets, “I would not put China in that category.”
Apple told its supplier to reduce the production after Tim Cook comments and Apple revised its forecast for quarterly revenue and cut its revenue up to $9 billion which Cook blamed on China U.S trade war.
Due to the lowered revenue forecast, Apple Shares fell 10%, costing investors $74 billion.Apple and Cook rejected the claims and said that there is no proof that they defrauded or intended to defraud the plaintiffs. Apple did not issue any statement after the Wednesday decision by the Court. The 23-page decisions say that Tim comments about demand in China were Materially false and misleading.
Yvonne said that while Cook might not have known specifics about “troubling signs” in China that the company had begun seeing, it “strains credulity” he would have been in the dark about the trade tensions and their possible impact on Apple.
The other Judge Rogers, who works in Oakland, previously dismissed claims related to the iPhone XS and XS Max demand wrote that the plaintiffs raised a strong interference that the Cook knew about the risk when he was talking to the analyst call on China which damage the market next day and investor lost billions of dollars.
