Apple sued for securities fraud
Apple faced a class action in which the company is accused of securities fraud for false statements and failure to disclose information on adverse business prospects, these actions allegedly led to artificially inflated share price.
In particular, the lawsuit alleges that Apple did not originally reported on the fall in demand for the iPhone because of poor sales in China and replacement program battery 2018, which contributed to the decline in iPhone sales in the first fiscal quarter of 2019.
Apple is also accused of concealing the fact that production orders from suppliers have been reduced and rates lowered. Apple’s decision to no longer provide reports on the number of units sold, iPhone and other devices, the company is also mentioned as the method that Apple used to increase the stock price to $ 209 per share.
When Apple announced the drop of sales of the iPhone and announced that he would not predict quarterly earnings, Apple shares fell to $ 15 with $ 2 157,92 January to 142.19 $ 3 Jan. According to the lawsuit, Apple knew that iPhone sales were behind schedule many months in advance of the publication of this information.
A lawsuit filed by the pension Fund for employees of the city of Roseville, aimed at compensation of damages on behalf of people who bought Apple shares in the period from November 2, 2018 January 2, 2019. The defendants named in the lawsuit, Apple CEO Tim cook and CFO Luca Maestri.
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