According to the Android Authority, the lawsuit centered on “false” statements made by Apple executives, including CEO Tim Cook, in their November earnings report, which caused an artificial stock price increase. Then Apple’s share price fell, causing losses for shareholders when the January 2019 earnings report was released.
California federal judge Yvonne Gonzalez Rodgers rejected most of the lawsuits in the case, but the ruling said Apple could be sued by shareholders for Cook’s comments. The strong demand for the iPhone, especially in China, was only a few days before the company withdrew iPhone production from several manufacturers.
“It is unbelievable that Cook was unaware of emerging market issues before publicly announcing a drop in sales two months later,” Rogers said.
At a meeting in November, Cook said that the iPhone model began with a very good start at the time, and entered several markets such as China that reduced sales. This case was filed by the Rhode Island state pension system, which represents all shareholders. In a statement, the plaintiff said that in mid-November, Apple instructed its assembly partners Foxconn and Pegatron to reduce the production of the new iPhone with very reduced orders.
At the time of the company’s January earnings announcement, Apple’s stock value had dropped by 10%, though it was almost back by the end of the month.
