APPLE TO PAY $490 MILLION TO SETTLE ALLEGATIONS THAT IT MISLED INVESTORS ABOUT IPHONE SALES IN CHINA

Apple has agreed to pay $490 million to settle a class-action lawsuit alleging CEO Tim Cook misled investors about a steep downturn in iPhone's sales in China that culminated in a jarring revision to the company's revenue forecast.

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The preliminary settlement filed in Oakland, California, federal court stems from a shareholder lawsuit focused on the way Apple relayed information about how iPhone models released in September 2018 were performing in China, one of the company's biggest markets.

Cook signaled that the new iPhones were off to a good start during an investor conference call in early November 2018, according to the complaint.

That reassurance dissolved into a huge letdown on Jan. 2, 2019 when the Cook issued a warning that Apple’s revenue for the justcompleted quarter would fall $9 billion below management’s forecast for the period. What’s more, virtually all of the sales drop was traced to weak demand in China.