A class-action lawsuit has gained approval from a federal court that accuses Apple of deceiving investors about iPhone shipments…
Apple has been named as a defendant in a new class-action lawsuit, according to Reuters. The civil complaint accuses the company of being disingenuous about the state of its iPhone sales to investors. The pleading revolves mostly around incidents effecting shipments in late 2018 of the iPhone XR, XS, and XS Max smartphones.
Court Approves Lawsuit against Apple for Allegedly Lying about Poor iPhone Sales
The plaintiff, the Employees’ Retirement System of the State of Rhode Island or ERSRI, which is a collective that provides retirement, disability, and survivor benefits to state employees, was presumably a large investor in Apple stock, giving the organization standing to bring the suit against the tech corporation.
More particularly, during a November 2018 investor call, the company disclosed its iPhone shipment numbers. During the call, CEO Tim Cook made remarks that the lawsuit alleges mislead investors about the success of sales to that point. Apple likewise made it known during the same call it would no longer reveal exact numbers about iPhone shipments during future investor updates.
Then, in January 2019, on another investor call, Apple said it was lowering its revenue estimates by billions of dollars. That caused the company’s stock to drop 10 percent in a single day, erasing $74 billion in value.