Apple Sued for Hiding the iPhone Sales Decline
Two lawsuits filed against Apple allege that the Cupertino-based tech giant violated the Securities Exchange Act of 1934 by making false and misleading statements related to the company’s business and prospects.
Specifically, two law firms, namely The Schall Law Firm and Robbins Geller Rudman & Dowd LLP, representing investors who purchased Apple stock between November 2, 2018 and January 2, 2019, claim Apple tried to hide the poor market performance of the iPhone, instead leading to an inflated share price.
The lawsuit alleges that Apple didn’t disclose key details regarding iPhone sales, hiding the fact that shipments were declining. This approach helped the company increase the share price to more than $209 per share, according to the lawsuit.
On the other hand, Apple acknowledged in early January that iPhones sales dropped, and for the first time in many years it revised its expectations. Apple’s stock then fell more than $15 per share.