Apple Facing Securities Fraud Lawsuit Over Mishandling iPhone Sales Information

Posted by Evan Selleck on Apr 17, 2019 in Apple News, News

Apple Australia

Apple’s tail-end of 2018 was not met with an overabundance of people clamoring for new iPhone models. At least, not as much as some people would have wanted (including Apple). Now the company is facing a class action lawsuit brought over a perceived mishandling of sales information related to the iPhone.

The class action lawsuit against Apple argues that the company was not forthcoming about a significant drop in iPhone demand, which is tied to poor sales in China and the 2018 iPhone battery replacement program that had a direct impact on upgrades. Those things contributed to less-than-stellar sales in the first fiscal quarter of 2019, leaving many to be disgruntled by the turn of events.

The lawsuit also alleges that Apple hid the fact that supply orders had been drastically reduced, and that sales prices had been cut. Interestingly, the lawsuit also pegs Apple’s decision not to announce specific unit sales any longer as a means to artificially inflate stock prices. The lawsuit is alleging that, despite the fact Apple did come forward and say that iPhone demand was lower than expected, it had made moves in the background to inflate stock prices months in advance.

The lawsuit’s goal is to get damages paid to individuals who bought Apple stock between November of last year, up until January 2 of 2019. Apple’s CEO, Tim Cook, and the company’s Chief Financial Officer, Luca Maestri, are named as defendants in the case.

[via BusinessWire]

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