Apple Settlement on Class-Action Lawsuit
Apple has reached a $490 million settlement to resolve a class-action lawsuit that alleged Chief Executive Tim Cook defrauded shareholders by concealing falling demand for iPhones in China.
Key Points
- Apple's unexpected revenue forecast slash led to the lawsuit
- Settlement amount equals a little under two days of Apple's profit
- Apple's share price has more than quadrupled since the incident
Pros
- Settlement resolves the class-action lawsuit
- Apple denies liability but settles to avoid cost and distraction of litigation
- Shareholders who bought Apple shares between certain dates are included in the settlement
Cons
- Apple had to pay a significant settlement amount
- Case involved allegations of Chief Executive Tim Cook defrauding shareholders