Apple reached an amicable agreement with shareholders of the group who accused it of having made misleading statements about its activity in China in 2018, the transaction providing for the payment of 490 million dollars.
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Between the first court summons, in April 2019, and the announcement of the agreement, which must still be validated by a federal judge in Oakland (California), the case took almost five years to find a solution.
Shareholders criticized Apple executives, particularly CEO Tim Cook, for asserting, in November 2018, that the company’s activity remained strong in China even though it was slowing down.
The Apple firm was suffering from the deceleration of the Chinese economy but also from tensions between China and the United States.
Asked about this during a conference call to present the results, Tim Cook assured that the only emerging markets in which Apple “(observed) pressure” on growth were Turkey, India, Brazil and Russia.
“I would not put China in this category,” he insisted.
But the following quarter, the Cupertino (California) group published figures well below expectations and missed its objectives for the first time since Tim Cook took office in 2011.
In addition to Apple, the shareholders – first and foremost the British county council of Norfolk, in the east of the United Kingdom – had also attacked Tim Cook and the financial director, Luca Maestri, as part of a group action.
The hearing devoted to the validation of the agreement has been set for April 30.
On the New York Stock Exchange, Apple shares fell 1.18% around 2:30 p.m. GMT.
