Norfolk County Council sue Apple over 'misleading' iPhone predictions
Shareholders are hoping for a large pay-out
Last updated 15th Feb 2022
Apple is set to be sued by Norfolk County Council as it takes out a class action lawsuit against the tech giant.
In addition to the company, the Council is also holding CEO Tim Cook and chief financial officer Luca Maestri responsible for misleading shareholders.
The dispute stems from a 'misleading' prediction about the continuing success of iPhones in China, despite sales going down elsewhere.
In 2018, the company reassured shareholders that despite the reduced number of phones being sold worldwide, China would remain a stable market.
However, the company would go on to offer a warning of bleak sales in China, which triggered an 8% drop in its shares.
Apple's shares would drop to as low as ÂŁ27 a share in January 2019, before rising to their current value at ÂŁ124 per share.
Norfolk County Council, a shareholder in the company, lost approximately $1 million (equivalent to ÂŁ730,000) of its pension fund, that would help those in the Norfolk area.
As a result, the Council is to take Apple, to court after a judge in California ruled the case could go ahead, in spite of Apple's attempts to have the case thrown out.
The council has taken out a class-action lawsuit, meaning that other shareholders in the company can also join in, in the hopes of a bigger pay-out by Apple.
Responding to the claims, Apple denied any wrongdoing and stated that their CEO's comments were more of an opinion than rigid financial advice.