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These few words spoken by Tim Cook cost Apple $490 million

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Tim Cook's comments are scrutinized, even if they were made several years ago. Apple has just agreed to pay $490 million as part of a class action lawsuit filed in 2019 against the company.

As ~60 reminds us ~em>Business Insider, the plaintiffs accused the manager of having made false comments concerning the sales made by the Cupertino company in China. In detail, during a presentation of quarterly results on November 1, 2018, Tim Cook explained to investors that the company was experiencing difficulties in certain markets, particularly in Turkey, Russia, India, and Brazil. He then specified: “I would not put China in this category”.

Apple accused of having harmed investors

And the CEO added: “Activities in China have been very strong during the last quarter, with growth of 16%, which we are very satisfied with. We recorded growth of 16%, which we are very satisfied with. The iPhone, in particular, saw very strong double-digit growth”.

At the start of 2019, the apple brand, however, lowered its revenue forecasts for the first quarter of the year. We thus went from a range of 89 to 93 billion dollars to 84 billion dollars. And precisely, the company attributed this unfavorable development to a drop in sales in China, against a backdrop of growing tension between Uncle Sam and the Middle Kingdom.

Therefore, some investors believed that Tim Cook's comments from November 2018 were false and misleading and caused an artificial increase in the price of Tim Cook's shares. ;Apple and that when the real facts were disclosed, Apple's stock price fell”. Apple denied this, but the company agreed to this settlement “in recognition that further litigation would be protracted, unduly burdensome, expensive, and distracting& ;#8221;.

Despite this mishap, Tim Cook remains a safe bet for Apple. He notably orchestrated the launch of the Apple Watch and Apple TV+ which have become gooses that lay golden eggs for the apple brand. In a recently published article, we returned to three little-known facts about this leader who was able to ensure the transition from Steve Jobs to the head of the Tech giant.

This What you need to remember:

  • Apple agrees to pay $490 million to settle a class action lawsuit 'shareholders
  • The latter felt wronged by comments made by Tim Cook in November 2018
  • The firm of Cupertino wanted to put an end to this affair

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Teilor Stone

By Teilor Stone

Teilor Stone has been a reporter on the news desk since 2013. Before that she wrote about young adolescence and family dynamics for Styles and was the legal affairs correspondent for the Metro desk. Before joining Thesaxon , Teilor Stone worked as a staff writer at the Village Voice and a freelancer for Newsday, The Wall Street Journal, GQ and Mirabella. To get in touch, contact me through my teilor@nizhtimes.com 1-800-268-7116