Apple Faces Second Class Action Lawsuit Threat Over Failing to Warn Investors About Slowing iPhone Demand

Discussion in ' News Discussion' started by MacRumors, Jan 4, 2019.

  1. MacRumors macrumors bot


    Apr 12, 2001

    New York-based law firm Bronstein, Gewirtz & Grossman has announced it is investigating whether Apple and certain executives violated U.S. federal securities laws after the company lowered its revenue guidance by up to $9 billion for the first quarter of its 2019 fiscal year earlier this week.


    The law firm is conducting the investigation on behalf of AAPL shareholders, with potential for a class action lawsuit, and encourages affected investors to obtain additional information and assist the investigation by visiting its website.

    Bernstein Liebhard LLP, another New York-based investor rights law firm, launched a nearly identical investigation of Apple earlier this week.

    Apple CEO Tim Cook in a letter to shareholders this week disclosed that Apple's revenue for the quarter just ended will be approximately $84 billion, significantly lower than its original guidance of $89 billion to $93 billion, due to "lower than anticipated iPhone revenue, primarily in Greater China."

    Both investigations contrast the positive language that Cook has previously used when speaking about China with the weaker language used in his letter to shareholders this week, in which he said Apple "did not foresee the magnitude of the economic deceleration, particularly in Greater China."
    In other words, both law firms are investigating whether Apple failed to warn investors about slowing iPhone demand, particularly in China.

    AAPL closed at $142.19 on Thursday, down 36 percent from a closing price of $222.22 on November 1, immediately prior to Apple's last earnings report. As a result, Apple's market valuation has plunged from a peak of around $1.1 trillion to under $700 billion, falling behind rivals Amazon, Microsoft, and Google.

    Article Link: Apple Faces Second Class Action Lawsuit Threat Over Failing to Warn Investors About Slowing iPhone Demand
  2. Christian 5G, Jan 4, 2019
    Last edited: Jan 4, 2019

    Christian 5G macrumors 6502a

    Christian 5G

    Jun 16, 2010
    Orange County, CA
    It’s just getting worse and worse for Apple, this might not be anything because it’s a class action, but there’s really nothing good I have seen about Apple for a while now...

    I’ll be honest but few weeks ago I got a chance to play around with one of the android phones and was fascinated by many tasks it was performing as well as the awesome “hey google”.

    I am really considering giving it a try for my next phone purchase.
  3. nathan_reilly macrumors member


    Apr 2, 2016
    I liked apple as the underdog. I don't like this new big apple.
  4. BvizioN macrumors 601


    Mar 16, 2012
    Manchester, UK
  5. MRrainer macrumors 65816

    Aug 8, 2008
    Zurich, Switzerland
    It's the stock-exchange, the unregulated casino - what did people expect?
  6. SoApple macrumors regular

    Sep 21, 2012
    No it really isn’t.

    This lawsuit is pure garbage. Class actions like this are why lawyers get bad rep.

    No Apple isn’t doomed.

    Move on ladies and gentlemen.
  7. Apple blogger macrumors 6502a

    Feb 28, 2013
  8. nburwell macrumors 601


    May 6, 2008
  9. BornAgainMac macrumors 603


    Feb 4, 2004
    Florida Resident
  10. Baymowe335 macrumors 601

    Oct 6, 2017
    People who don’t understand stocks or markets will think this is serious.
    --- Post Merged, Jan 4, 2019 ---
    Not only rich people own stocks.
  11. Ramchi macrumors 6502a


    Dec 13, 2007
    Had investors knew of slowing sales, whether they would have filled the gap in revenue by making bulk purchases of iPhones? What if Apple posted higher than expected revenue, still they would go after Apple or only when it is lower?
  12. jscooper22 macrumors regular


    Feb 8, 2013
    Syracuse, NY
    As much as investment drives an economy, and is generally positive (I think, anyway), it does have the downside of making investors customers and customers commodities to please them.
  13. Ramchi macrumors 6502a


    Dec 13, 2007
    Supposedly regulated casino :)
  14. bbednarz macrumors 65816


    Nov 16, 2017
    Even with them adjusting the guidance doesn't it still come out to their second biggest quarter ever...?
  15. macsrcool1234 macrumors 65816

    Oct 7, 2010
    I have no problem with this, keep them coming. Enjoy the lawsuits.

    You reap what you sow, Apple.
  16. Q-Dog macrumors 6502a


    Sep 9, 2007
    Anyone can threaten a lawsuit. That doesn't mean it has any merit.
  17. adamjackson macrumors 68000

    Jul 9, 2008
    Two law firms announcing on social media that they're investigating if there's even a case is pretty far removed from two law firms have filed a case in court. These are just opportunistic 'ambulance chaser' firms trying to bill out millions in fees in the form of class action suits so investors can each get $25 on the backs of opportunistic lawyers.
  18. Baymowe335 macrumors 601

    Oct 6, 2017
    And highest EPS quarter ever.

    This will go nowhere. I’m an investor and even I don’t think Apple did anything wrong here. Sometimes you have to put on your big boy pants and understand we live in reality.

    This was always a risk and Apple disclosed that it happened in China and emerging markets. Proving when they knew and when they needed to tell investors will be impossible.
  19. sza Suspended

    Dec 21, 2010
    New iPad Pro is $150 more expensive, new iPhones staring with iPhone X are $150 more expensive than plus model. Tim Crook cares about profit only.
  20. HacKage macrumors 6502

    May 14, 2010
    It's nothing to do with the actual slowing down of sales, it's the fact that 2 months ago Tim Cook came out and said growth was in double digits for iPhones, yet they had to give their first profit warning in 17 years due to "lower than anticipated iPhone revenue".

    Which is it? Are iPhone sales showing double digit growth, which linked to higher price tiers should mean far higher revenue, or are the sales not that good and you inflated your expected results in order to increase investment?

    Apple's value has increased to what it was, the first $1T American company based on year on year improvements financially. Investors couldn't get enough of it, and neither could the public. Then things changed and Apple tried to hide it by not giving sales figures in the reports and the investors saw right through it.
  21. gnipgnop macrumors 65816

    Feb 18, 2009
    Are there examples of other companies that do a lot of business in China predicting a major shortfall for this same time period? The last time the United States engaged in major tariff battles was back in the 1920s. It's not like Apple had recent history to base their evaluations on. In some ways, it's uncharted territory for the current global economy.
  22. Martius macrumors 6502


    Jul 12, 2008
    Prague, CZ
    Lawsuit because of what? Because they are stupid and trying to sell overpriced stuff? Good luck with that...

    But keep them coming, because Apple has to get back on the ground and fix all the issues with their hardware.
  23. racerhomie macrumors 6502


    Aug 14, 2015
    Don’t worry .No body cares. There are 1.4 Billion iOS users. Only growing.You won’t be missed.
  24. Baymowe335 macrumors 601

    Oct 6, 2017
    No, investors are the ones who want more and more profit. That’s how this works.

    Go read about how much Visa, Disney or AT&T have increased prices. This isn’t an Apple thing. It’s the life of a publicly traded company.

    Welcome to business.
  25. thejadedmonkey macrumors 604


    May 28, 2005
    I don't think Apple expected the backlash to be so large. It's like they've had their head in the sand regarding screen size, headphone jack, and pricing.

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195 January 4, 2019