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

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

  1. MacRumors macrumors bot

    MacRumors

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    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.

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    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

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    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

    nathan_reilly

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

    BvizioN

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  5. MRrainer macrumors 65816

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    #5
    It's the stock-exchange, the unregulated casino - what did people expect?
     
  6. SoApple macrumors regular

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    #6
    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

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  8. nburwell macrumors 601

    nburwell

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  9. BornAgainMac macrumors 603

    BornAgainMac

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  10. Baymowe335 macrumors 601

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    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

    Ramchi

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    #11
    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

    jscooper22

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    #12
    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

    Ramchi

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    Supposedly regulated casino :)
     
  14. bbednarz macrumors 65816

    bbednarz

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    #14
    Even with them adjusting the guidance doesn't it still come out to their second biggest quarter ever...?
     
  15. macsrcool1234 macrumors 65816

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    #15
    I have no problem with this, keep them coming. Enjoy the lawsuits.

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

    Q-Dog

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    #16
    Anyone can threaten a lawsuit. That doesn't mean it has any merit.
     
  17. adamjackson macrumors 68000

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    #17
    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

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    #18
    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

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    #19
    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

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    #20
    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

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    #21
    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

    Martius

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    #22
    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

    racerhomie

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    #23
    Don’t worry .No body cares. There are 1.4 Billion iOS users. Only growing.You won’t be missed.
     
  24. Baymowe335 macrumors 601

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    #24
    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

    thejadedmonkey

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    #25
    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