Law firm explores class action against Apple for potential securities fraud, cites recent ...
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.
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.
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.
Comments
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.
They are looking help themselves, not share holders.
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.
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.
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.
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.
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.
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-- Language or similar used by every company including Apple during earnings calls.