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Apple<\/a> has agreed to pay $490 million to settle a class-action lawsuit. The suit alleges that Tim Cook, Apple\u2019s chief executive, defrauded shareholders by hiding the fact that iPhone demand was falling in China.<\/p>\n The preliminary settlement was filed on Friday, March 15, 2024, with the US District Court in Oakland, California. According to Reuters<\/a>, this lawsuit came about following Apple\u2019s announcement on Jan 2, 2019, that the company would cut its quarterly revenue forecast by up to $9 billion due to tensions between the US and China<\/a>.<\/p>\n In an analyst call on November 1, 2018, Cook told investors that while Apple faced sales pressure in other markets, including Turkey, Russia, India, and Brazil, he would \u201cnot put China in that category.\u201d Then, some days later, Apple told suppliers to cease production on iPhones in China.<\/p>\n Following this, Apple\u2019s shares fell by 10% the next day, wiping out $74 billion of market value. Legal papers viewed by Reuters found that while Apple denied liability, the company settled to avoid a full legal case.<\/p>\n According to Reuters, this settlement will cover investors who bought shares in Apple following Cook\u2019s comments. US District Judge Yvonne Gonzalez Roger refused to dismiss the lawsuit when it was filed last June because she deemed it \u201cplausible\u201d that Cook could have been discussing Apple\u2019s sales outlook in relation to China rather than currency changes. She also claimed that Apple already knew that China\u2019s economy was slowing down.<\/p>\n Reuters also reported that lawyers for the shareholders will be able to seek fees of up to 25% of the settlement\u2019s amount.<\/p>\n This isn\u2019t the only legal crisis Apple has been facing recently. After a lengthy legal battle in the past, Epic Games<\/a> has filed another lawsuit against Apple over App Store commission.<\/p>\n Featured Image: Photo by Torsten Dettlaff; Pexels<\/a><\/em><\/p>\n<\/p><\/div>\nDespite settling, Apple denies liability<\/h2>\n