14 DAY TRIAL // Two lawsuits filed against Apple allege that the Cupertino-based tech giant violated the Securities Exchange Act of 1934 by making false and misleading statements related to the company’s business and prospects.
Specifically, two law firms, namely The Schall Law Firm and Robbins Geller Rudman & Dowd LLP, representing investors who purchased Apple stock between November 2, 2018 and January 2, 2019, claim Apple tried to hide the poor market performance of the iPhone, instead leading to an inflated share price.
The lawsuit alleges that Apple didn’t disclose key details regarding iPhone sales, hiding the fact that shipments were declining. This approach helped the company increase the share price to more than $209 per share, according to the lawsuit.
On the other hand, Apple acknowledged in early January that iPhones sales dropped, and for the first time in many years it revised its expectations. Apple’s stock then fell more than $15 per share.
Investors can join the case right now
According to court documents, Apple failed to disclose the following:
| (a) the U.S.-China trade war had negatively impacted demand for iPhones and Apple’s pricing power in greater China; |
| (b) due to Apple discounting the cost of replacement batteries to make up for the Company’s prior conduct of intentionally degrading the performance of the batteries in older iPhones, the rate at which Apple customers were replacing their batteries in older iPhones, rather than purchasing new iPhones, was negatively impacting Apple’s iPhone sales growth; |
| (c) as a result of slowing demand, Apple had slashed production orders from suppliers for the new 2018 iPhone models and cut prices to reduce inventory; |
| (d) defendants’ decision to withhold unit sales for iPhones and other hardware, which was a metric relevant to investors and their view of the Company’s financial performance, was designed to and would mask declines in unit sales of the Company’s flagship product. |
You can find the full details in the press releases embedded below.