Norfolk, Virginia – Norfolk County Council has reached a settlement agreement with Apple, with the tech giant agreeing to pay $490 million to resolve a lawsuit led by the council. The lawsuit alleged that Apple’s CEO, Tim Cook, misled shareholders by concealing diminished demand for iPhones in China, leading to financial losses for the Norfolk Pension Fund administered by the council.
The class action lawsuit, representing a group of claimants, focused on statements made by Tim Cook in 2018 concerning sales pressures in certain countries, excluding China. However, Apple later revised its revenue forecast in 2019 due to escalating tensions between China and the US, causing a significant decline in the company’s stock value.
Investors who purchased Apple shares between November 2018 and January 2019 were among the claimants who asserted that they suffered financial losses as a result of being misled by Cook’s earlier remarks. Originally filed by the US city of Roseville, the lawsuit was taken over by Norfolk Council as the lead plaintiff in 2020.
Apple, which had contested the litigation, has agreed to the preliminary settlement, subject to approval by a judge. The settlement, filed with the U.S. District Court in Oakland, California, is expected to avert a trial scheduled for later this year. The precise amount that Norfolk County Council will receive from the settlement remains undisclosed.
Despite posting $97 billion in net income during the last fiscal year, Apple’s agreement to pay $490 million in settlement may be seen as a symbolic gesture by one of the world’s wealthiest companies. The Norfolk Pension Fund expressed satisfaction with the recovery for investors, emphasizing their commitment to taking action against investment fraud that harms participants.