Apple is moving on from a class action lawsuit that claimed CEO Tim Cook defrauded investors in 2019. The cost of doing business is just $490 million for Apple, according to a settlement that will have to be approved by the court.
The lawsuit was over a statement Cook made during a quarterly earnings call at the end of 2018.
Cook named a number of markets where iPhone sales were being affected by various economic factors but declined to include China as an area for concern. At the start of 2019, Apple revised its quarterly sales forecast downward to reflect new realities that were hurting demand in the region.
In 2020, a lawsuit claiming Cook intentionally defrauded investors who lost money during the downturn got the green light to move forward. Apple responded by challenging the lawsuit’s validity, but the court maintained its position that the lawsuit was legitimate.
The lawsuit was still hanging around last summer before Apple’s $490 million settlement package was offered. Enjoy the payday, attorneys! The settlement amounts to roughly a day and a half of profit for Apple. Fortunately, this year has an extra day in it to make up for the lost half a billion.
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