A British parliament has filed a lawsuit against Apple over Tim Cook's remarks about China's iPhone demand. Now, the lawsuit has been granted class-action status. A group of shareholders led by Norfolk County Council in the UK has successfully turned a lawsuit against Apple into a class action. The move opens the door for any affected shareholders to join the lawsuit, potentially increasing the risk Apple faces. (Norfolk County Council is the governing body of the Norfolk Pension Fund)
The lawsuit concerns comments Cook made during a November 2018 earnings call. At the time, Cook said Apple was seeing sales pressure in some markets. However, he went on to say, " I wouldn't put China in that category ." In 2019, Apple lowered its revenue guidance due to lower iPhone sales in China. Shareholders, including Norfolk County Council, argue that the revised guidance came too late and that Apple should have foreseen the problem, accusing it of concealing the fact that demand has fallen.
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