In recent years, Apple’s stock experienced a sharp decline worth tens of billions of dollars, so that the company’s market value decreased significantly. A few years later, Apple is speeding towards a three trillion dollar market cap. Of course, this company had already achieved this market value for a short period of time.
Despite Apple’s stock doing very well, a class action lawsuit claims Tim CookThe CEO of this company has defrauded the shareholders. This old complaint is related to one of Tim Cook’s statements in Apple’s 2018 final quarter financial report briefing.
At the time, Tim Cook pointed to a number of markets where iPhone sales were affected by economic conditions. In his speech, Cook did not mention China as a market of concern for Apple. At the start of 2019, Apple revised its quarterly sales forecast and lowered the sales number in response to declining demand in China.
In 2020, a complaint alleged that Tim Cook defrauded investors and caused them to lose money during the decline in Apple’s stock value. It wasn’t long before we saw this case turn into a group complaint. Apple challenged the validity of the case at the time, but the court has maintained its position, saying the case has legal validity.
According to Reuters, the United States district judge has given the green light to continue Apple’s legal case. He says investors can file a complaint related to the $74 billion drop in Apple’s market value in a single day.