Apple lost $490 million because of CEO Tim Cook's statement

Apple has settled a $490 million class action lawsuit over misleading statements made by CEO Tim Cook regarding iPhone sales in China in 2018.

Specifically, at a meeting with investors in November 2018, Apple's CEO said that sales of the newly launched iPhone model were "off to a good start" in China. But when the truth was revealed, the company's stock lost 10% of its value in one day, according to AP.

CEO Tim Cook accused of misleading investors about real iPhone sales in China

Things aren’t as rosy as Tim Cook has made them out to be. In January 2019, Apple reported that its global revenue was $9 billion lower than expected in its most recent fiscal quarter, largely due to poor performance in China. This marked the first time since the iPhone launched in June 2007 that the tech giant had to lower its revenue forecast.

That made investors "restless" and the result of the 10% drop in stock value was an amount of 70 billion USD "swept away" from the hands of those holding Apple shares.

Apple initially denied that CEO Tim Cook intended to mislead investors with his statements, but the four-year-long litigation has left the company exhausted. The company has finally decided to settle the case once and for all. Part of the pressure also comes from the fact that the district judge who is handling the lawsuit between Apple and game company Epic has just rejected Apple's request to dismiss and set a hearing for September 9.

Judge Rogers will oversee a hearing on April 30 to discuss a settlement between Apple and the investors who filed the class action. Investors who bought Apple stock in late 2018 could receive a portion of the $490 million payment, minus $122 million, or 25 percent, in legal fees.

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