TSLA has been sued a number of times by customers and shareholders for overpromising on FSD.
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Apple Sued by Shareholder Over Delayed Siri Features Allegedly Lowering Stock Price
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"Apple shareholder Eric Tucker" probably made a big play and got burned by the market. When he saw the vulture lawyers' advertisements for plaintiffs, he decided he might have an opportunity to get someone else to cover his losses under the guise of doing what's best for Apple shareholders and our bank accounts.
In 99% of such cases, the only investors, traders, etc. that get burned are the short term players who have used some kind of leverage or options or futures to make a big play without having to put up much cash to do it. They like to ignore the fact that if it turns on you, the financial liability can be far more than just losing the cash you put up to get into the position.
In 99% of such cases, the only investors, traders, etc. that get burned are the short term players who have used some kind of leverage or options or futures to make a big play without having to put up much cash to do it. They like to ignore the fact that if it turns on you, the financial liability can be far more than just losing the cash you put up to get into the position.
Deceiving investors is a crime. Apple promised something, stock went up, didn’t deliver and then paid the price. There is merit here.
Maybe we will actually find out if they were only showing a mock up. Apple is claiming they were not still.
Nah. It's regular vulture lawyer material. Apple did not commit a crime. It's a civil matter. There will be a settlement - 50 cents and a coupon for the Apple store for customers and $50 million for the lawyers. They will have to prove Apple knew it was a lie when they said it causing intentional deception to manipulate the stock price.
Companies say things, all the time, especially about what they plan to do. Many turn out to not be true. Many of those untruths have an effect on a stock's price. They will have to prove intent and knowledge they knew they were lies when they said it.
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All the supporters of false advertising here is surprising. What's next -- a new iPhone on "demo" that doesn't exist?
The larger shareholders own a lot of that blame too with the pressure for constant year over year growth. If it wasn't for that pressure and the need for that upward trend in stock price, Apple might be inclined to extend their release cycles or just hold off until things are close to or fully ready to go. It's unfortunate that it's like that now in modern times, not even just with Apple but with software in general.
That's what the market is now. It's the board and shareholders of most companies driving a lot of those decisions with the pressure of constant year over year growth. Always have to be sure that the stock price is continually trending upwards else risk large sell offs. It blows my mind with the amount of shortsightedness these people have. If you foster trust and good relationships with your customers, you will continue to make money long-term. Break that trust and it's harder to win them back.
I can see the sarcasm there, but they really are a detriment in the decision-making process a lot of times when they only care about the almighty dollar instead of building trust and good relationships with the customer base.
Not really a good example. A settlement is not an admission of guilt, but simply the lawyers and accounting departments deciding it would be cheaper to settle than to go to court.People who think this will get easily thrown out, don't fully understand how powerful CEO statements are.
Apple reaches $490 million settlement over CEO Cook's China sales comments
Apple agreed to pay $490 million to settle a class-action lawsuit that alleged Chief Executive Tim Cook defrauded shareholders by concealing falling demand for iPhones in China.www.reuters.com
Sure. $500 million dollar settlement is "cheaper to settle than go to court." Not sure what reality you live in.
To give you some perspective from the real world, the largest legal case in recent history was between Dell and its shareholders. In that case, 5 law firms split $267 million in legal fees.
Let me teach you one legal word: scienter.
The difference is, Elon's claims were aspirational.
Tim Cook and Apple's claims can be construed as materially false or misleading because you have Siri boss Robby Walker saying during an all-staff they demonstrated something at WWDC that wasn't ready. There was no credible path to a public release.
You also have Apple deleting words on their website, updating old press releases to remove phrases, and taking down ads.
They seem to have forgotten it was their fault for pressuring Apple into the AI arms race because they were ready that got them here
wasnt there rumours the first iPhone was lucky to make it through the demo on stage...
anyone doing a live demo usually shakes until the show is over.
i've had software releases with lots of stubs waiting for users to finally sign off on what they want - after months of "i wont know what i want until i see it" crap. used to get in trouble from upper management for looking disengaged on discussions for stage three design until i pointed out stage one work hadnt been signed off as user accepted and discussing future iterations was a waste of everyone's time until that was complete.
management often dont get the application lifecycle...
stock prices fluctuate up and down after every announcement.
sometimes defying what was said.
markets are emotional. not sensible.
hard to pin an increase on one thing when it could have been just a positive vibe from the stage show that day...
