APPLE is facing two lawsuits after being accused of investment fraud because it allegedly made false statements and failed to disclose some negative business prospects, such as a decline in iPhone demand.
These false statements are said to have led to artificially inflated stock prices, which is known as stock manipulation and is illegal.
Apple CEO Tim Cook is being sued[/caption]
The company is being sued on behalf of groups of people who purchased Apple common stock between November 2, 2018 and January 2, 2019.
One of the lawsuits is claiming that Apple was not initially forthcoming about a drop in demand for the iPhone because of poor sales in China and the battery replacement program of 2018.
Both of these factors are thought to have contributed to lower than expected iPhone sales during the November 2018 to January 2019 time period.
The lawsuits also accuse Apple of concealing a drop in production orders from suppliers.
The fact Apple did not provide unit sales for iPhones or other devices is being cited as a way in which the company illegally caused stock prices to rise.
These actions allegedly caused a $209 (£161) stock price increase for each share.
Apple CEO Tim Cook and the company’s financial officer Luca Maestri have both been listed as defendants in the lawsuit as allegedly committing the crime.
Apple did eventually reveal the dip in iPhone sales, which resulted in stock falling $15 (£12) per share from $157.92 (£121) on January 2 to $142.19 (£109) per share on January 3 2019.
Both lawsuits suggest Apple knew iPhone sales were dropping months before it actually revealed the dip.
The first lawsuit was filed by the City of Roseville employees’ retirement fund, which is being represented by the Robbins Geller law firm.
The Schall Law Firm has announced that it will be representing the group of investors who filed the second lawsuit.
We’ve asked Apple for comment and will update this story with any response.
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