Law firm explores class action against Apple for potential securities fraud, cites recent ...

Posted:
in General Discussion edited January 2
Self-professed "nationally acclaimed investor rights law firm" Bernstein Liebhard on Wednesday said it is investigating allegations of potential securities fraud violations on behalf of Apple shareholders, noting the company's recent earnings forecast cut runs counter to comments made on the health of its Chinese business.

iPhone XS


Bernstein Liebhard announced -- and advertised -- the potential class action in a post to its website shortly after Apple lowered earnings guidance for its first fiscal quarter of 2019.

In a letter to investors, Apple CEO Tim Cook said the company is expecting to end the quarter with $84 billion in revenue, a figure down more than 7 percent from an anticipated $89 billion to $93 billion forecast issued at the end of fiscal 2018. Cook blamed the cut on weak iPhone demand in Greater China and "other emerging markets."

The statement is at odds with an appraisal of Apple's Chinese business Cook offered during an investor conference call in September, Bernstein Liebhard said. Specifically, the law firm takes umbrage with Cook's characterization of Chinese iPhone demand over the trailing quarter.

"Our business in China was very strong last quarter. We grew 16 percent, which we're very happy with. iPhone in particular was very strong, very strong double-digit growth there," Cook said at the time.

The law firm in its press release claims the statement amounts to "materially misleading business information" issued by an Apple executive.

How, exactly, Bernstein Liebhard intends to correlate two statements taken from two different time periods, and each pertaining to a respective fiscal quarter, is unclear.

Following Cook's letter on Wednesday, Apple's stock price dipped nearly $12, or or over 7.5 percent, in after-hours trading.
baconstang

Comments

  • Reply 1 of 18
    jdwjdw Posts: 774member
    They of course CAN'T "correlate the  two statements" but instead hope that yet another frivolous lawsuit will line their pockets with more green.  

    Way too many lawsuits in the US.  This is nothing new.  But it is sad the American people don't take proactive steps to make it significantly harder and much less financially rewarding to sue, for any reason.
    Anilu_777baconstangmagman1979leavingthebiggwilliamlondon
  • Reply 2 of 18
    He’s a troll. Why the f people think they can keep launching frivolous lawsuits is beyond me. Things change in the financial markets. The whole stock exchange is down. “It’s the economy, stupid!”
    magman1979mwhitewilliamlondon
  • Reply 3 of 18
    jungmarkjungmark Posts: 6,709member
    Lawyers. Cook commented on the last quarter. Past performances do not guarantee  future results. 
    magman1979baconstangwilliamlondon
  • Reply 4 of 18
    elijahgelijahg Posts: 988member
    These kind of bottom feeders really should be charged with wasting court time. 
    magman1979baconstangwilliamlondonJWSC
  • Reply 5 of 18
    lennlenn Posts: 36member
    Lawyers are the scourge of the earth. All they care about is billable hours and making tons of money off class action lawsuits where most of the money goes to the lawyers. Btw, most politicians are lawyers. Should tell you something....
    agilealtitudemagman1979
  • Reply 6 of 18
    These ambulance chasers would have no case against Apple.
    They are looking help themselves, not share holders.
    magman1979
  • Reply 7 of 18
    cpsrocpsro Posts: 2,475member
    When I'm bothered by a mosquito, I swat it. End of problem.
    magman1979
  • Reply 8 of 18
    mac_dogmac_dog Posts: 699member
    If this is ever presented before a judge, Apple should ask for any damages + attorney fees.
    agilealtitudemagman1979baconstangleavingthebigg
  • Reply 9 of 18
    flydogflydog Posts: 328member
    lenn said:
    Lawyers are the scourge of the earth. All they care about is billable hours and making tons of money off class action lawsuits where most of the money goes to the lawyers. Btw, most politicians are lawyers. Should tell you something....
    Or it could be that most politicians are part of lawmaking bodies, where knowledge of the law is helpful.  
    zoetmb
  • Reply 10 of 18
    ktappektappe Posts: 770member
    Is there any particular reason why the judge who receives this suit doesn't censure the lawyer due to the frivolity of the filing?
    leavingthebiggJWSC
  • Reply 11 of 18
    Anilu_777 said:
    He’s a troll. Why the f people think they can keep launching frivolous lawsuits is beyond me. Things change in the financial markets. The whole stock exchange is down. “It’s the economy, stupid!”
    They think they can launch frivolous lawsuits because they’re profitable.  Public companies have insurance for these types of things.  Often they settle to avoid the chance they’ll lose.

    Worst case scenario is Bernstein Liebhard gets free publicity, if they never go through with the lawsuit.  No, they don’t have a case, but it doesn’t matter.

    It’s a system that’s win-win for lawyers.  That’s what happens when lawyers are in all branches of government.  The public elects them (to congress, etc.) because they’re professional liars.

    Welcome to the shitshow...

    Republicans blame Democrats for xyz
    Democrats blame Republicans for xyz

    Doesn’t make a difference... they’re all lawyers.
    JWSC
  • Reply 12 of 18
    maestro64maestro64 Posts: 4,640member
    Man it did not take them long on this one.

    But if what Apple said is 100% true the battery replacement program cost new phone sales, Apple had to know this back in Oct when they did the earnings call, this should not have been a 12/31 surprise for Apple.

    I wondering if there is more to this than just the battery replacement, we heard Chinese companies were telling employees to boycott Apple product and buy Chinese products, over the whole tariff thing. 
  • Reply 13 of 18
    maestro64maestro64 Posts: 4,640member

    lenn said:
    Lawyers are the scourge of the earth. All they care about is billable hours and making tons of money off class action lawsuits where most of the money goes to the lawyers. Btw, most politicians are lawyers. Should tell you something....
    This go to a saying a lawyer once told me, Governments are a job program for Lawyers. If it was not for government making all kinds of laws lawyers would be out of a job.

    You would also think that with most politicians being lawyers they would not write laws which courts over turn all the time. But they get to tell everyone its not their fault, they wrote a law to fix a problem but the courts are the ones who through out the law.
  • Reply 14 of 18
    maestro64 said:

    lenn said:
    Lawyers are the scourge of the earth. All they care about is billable hours and making tons of money off class action lawsuits where most of the money goes to the lawyers. Btw, most politicians are lawyers. Should tell you something....
    This go to a saying a lawyer once told me, Governments are a job program for Lawyers. If it was not for government making all kinds of laws lawyers would be out of a job.

    You would also think that with most politicians being lawyers they would not write laws which courts over turn all the time. But they get to tell everyone its not their fault, they wrote a law to fix a problem but the courts are the ones who through out the law.
    Politicians don’t really “write” laws anymore, “special interest groups” do.  

    Usually politicians have their staff summarize it for them,  but they do get involved in small changes. Usually, that’s to tack on some “pork” to make it look good for their constituents.  You know, bridges to nowhere kind of stuff.

    On the bright side, the “special interest groups” have armies of lawyers.
    dewme
  • Reply 15 of 18
    F-ing idiot charlatans
  • Reply 16 of 18
    larryjwlarryjw Posts: 396member

    Certain information set forth in this presentation contains “forward-looking information”, including “future oriented financial information” and “financial outlook”, under applicable securities laws (collectively referred to herein as forward-looking statements). Except for statements of historical fact, information contained herein constitutes forward-looking statements and includes, but is not limited to, the (i) projected financial performance of the Company; (ii) completion of, and the use of proceeds from, the sale of the shares being offered hereunder; (iii) the expected development of the Company’s business, projects and joint ventures; (iv) execution of the Company’s vision and growth strategy, including with respect to future M&A activity and global growth; (v) sources and availability of third-party financing for the Company’s projects; (vi) completion of the Company’s projects that are currently underway, in development or otherwise under consideration; (vi) renewal of the Company’s current customer, supplier and other material agreements; and (vii) future liquidity, working capital, and capital requirements. Forward-looking statements are provided to allow potential investors the opportunity to understand management’s beliefs and opinions in respect of the future so that they may use such beliefs and opinions as one factor in evaluating an investment.

    These statements are not guarantees of future performance and undue reliance should not be placed on them. Such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause actual performance and financial results in future periods to differ materially from any projections of future performance or result expressed or implied by such forward-looking statements.

    Although forward-looking statements contained in this presentation are based upon what management of the Company believes are reasonable assumptions, there can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The Company undertakes no obligation to update forward-looking statements if circumstances or management’s estimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements.

    -- Language or similar used by every company including Apple during earnings calls. 

  • Reply 17 of 18
    wood1208wood1208 Posts: 1,988member
    Lawyer = lair. Live on others sufferings.
  • Reply 18 of 18
    DAalsethDAalseth Posts: 684member
    The statement is at odds with an appraisal of Apple's Chinese business Cook offered during an investor conference call in September, Bernstein Liebhard said
    A hell of a lot has changed since September. This suit, if they're stupid enough to try to proceed with it, will get laughed out of court.
    JWSC
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