Apple Inc. has reached a $490 million settlement to resolve a class-action lawsuit alleging that Chief Executive Tim Cook misled shareholders by concealing declining iPhone demand in China. The preliminary settlement, filed on Friday in the U.S. District Court in Oakland, California, is subject to approval by U.S. District Judge Yvonne Gonzalez Rogers.
The lawsuit stemmed from Apple's surprise announcement on January 2, 2019, when the tech giant revealed plans to slash its quarterly revenue forecast by up to $9 billion, citing trade tensions between the United States and China. Cook's earlier remarks on a November 1, 2018, analyst call, where he did not include China in a list of countries facing sales pressure, were central to the case. Shortly after Cook's comments, Apple instructed suppliers to reduce production.
