The City of Roseville Employees’ Retirement System files a Securities Fraud Class Action Lawsuit against Apple
The City of Roseville Employees’ Retirement System has filed a lawsuit against Apple. This is a securities fraud class action on behalf of all purchasers of Apple common stock between November 2, 2018 and January 2, 2019. The court filing lists Apple Inc., Timothy D. Cook and Luca Maestri as defendants.
Causes for Action
Count 1: For Violation of §10(b) of the Exchange Act and Rule 10b-5
Count 2: For Violation of §20(a) of the Exchange Act
One segment of the complaint before the court states: "Notwithstanding the impact of slowing economic growth in China, geopolitical pressures caused by U.S.-China sales tariffs, and the Company’s ability to compel unnecessary iPhone upgrades on customers, Apple issued a series of materially false and misleading statements in November 2018 concerning demand for iPhones and Apples pricing power for its hardware offerings, including its new iPhones launched in September 2018, in particular in China.
Further, the complaint states that "During a conference call for analysts and investors held later that same evening, when asked whether the U.S.-China trade tariffs and trade tariff threats were having any impact on demand for iPhones in China, defendant Timothy D. Cook assured investors that the only "emerging markets that [Apple was] seeing pressure in [were] markets like Turkey, India, Brazil, [and] Russia . . . where currencies had weakened." Cook added, however, "in relation to China specifically, I would not put China in that category. Our business in China was very strong last quarter. We grew 16%, which we’re very happy with. iPhone, in particular, was very strong double digit growth there." (Note: colored highlights in the statement were added by Patently Apple)
The lawsuit goes on to list many examples of what they believe to be misleading statements by Apple's CEO and CFO. For specifics of this case, review the full Class Action lawsuit filings below provided to you courtesy of Patently Apple.
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