Robbins Geller Rudman & Dowd LLP Files Class Action Suit against Apple Inc.

SAN DIEGO–(BUSINESS WIRE)–Robbins
Geller Rudman & Dowd LLP
(http://www.rgrdlaw.com/cases/appleinc/)
today announced that a class action has been commenced by an
institutional investor on behalf of purchasers of Apple Inc. (NASDAQ:
AAPL) common stock during the period between November 2, 2018 and
January 2, 2019 (the “Class Period”). This action was filed in the
Northern District of California and is captioned City of Roseville
Employees’ Retirement System v. Apple Inc., et al.
, No. 19-cv-2033.

The Private Securities Litigation Reform Act of 1995 permits any
investor who purchased Apple common stock during the Class Period to
seek appointment as lead plaintiff. A lead plaintiff acts on behalf of
all other class members in directing the litigation. The lead plaintiff
can select a law firm of its choice. An investor’s ability to share in
any potential future recovery is not dependent upon serving as lead
plaintiff. If you wish to serve as lead plaintiff, you must move the
Court no later than 60 days from today. If you wish to discuss this
action or have any questions concerning this notice or your rights or
interests, please contact plaintiff’s counsel, Darren
Robbins
of Robbins Geller at 800/449-4900 or 619/231-1058, or via
e-mail at djr@rgrdlaw.com. You can
view a copy of the complaint as filed at http://www.rgrdlaw.com/cases/appleinc/.

The complaint charges Apple and certain of its officers with violations
of the Securities Exchange Act of 1934. Apple designs, develops, and
sells consumer electronics, computer software, and online services. The
Company’s most well-known products include its iconic iPhone
smartphones, the iPad tablet computer, and the Mac personal computer.
The iPhone, which is one of the Company’s flagship products, generated
approximately two-thirds of Apple’s revenue in 2018.

The complaint alleges that during the Class Period, defendants made
materially false and misleading statements and/or failed to disclose
adverse information regarding Apple’s business and prospects.
Specifically, defendants failed to disclose that: (a) the U.S.-China
trade war had negatively impacted demand for iPhones and Apple’s pricing
power in greater China; (b) due to Apple discounting the cost of
replacement batteries to make up for the Company’s prior conduct of
intentionally degrading the performance of the batteries in older
iPhones, the rate at which Apple customers were replacing their
batteries in older iPhones, rather than purchasing new iPhones, was
negatively impacting Apple’s iPhone sales growth; (c) as a result of
slowing demand, Apple had slashed production orders from suppliers for
the new 2018 iPhone models and cut prices to reduce inventory; and (d)
defendants’ decision to withhold unit sales for iPhones and other
hardware, which was a metric relevant to investors and their view of the
Company’s financial performance, was designed to and would mask declines
in unit sales of the Company’s flagship product. As a result of this
information being withheld from the market during the Class Period, the
price of Apple stock was artificially inflated to more than $209 per
share.

Then on January 2, 2019, after the close of trading, Apple disclosed
that, for the first time in 15 years, Apple would miss its prior
quarterly revenue forecast amid falling iPhone sales in China, its
third-largest market after the United States and Europe. The Company
announced first quarter fiscal 2019 revenues of only $84 billion, far
below the expected range of $89 billion to $93 billion the Company had
announced just eight weeks earlier on November 1, 2018. The Company also
admitted that in addition to macroeconomics in the Chinese market, the
price cuts to battery replacements a year earlier to fix the Company’s
prior surreptitious conduct had hurt iPhone sales. This news caused the
market price of Apple common stock to decline more than $15 per share,
or more than 9%, from a close of $157.92 per share on January 2, 2019 to
a close of $142.19 per share on January 3, 2019.

Plaintiff seeks to recover damages on behalf of all purchasers of Apple
common stock during the Class Period (the “Class”). The plaintiff is
represented by Robbins Geller, which has extensive experience in
prosecuting investor class actions including actions involving financial
fraud.

Robbins Geller is a national law firm representing investors in
securities litigation. With 200 lawyers in 10 offices, Robbins Geller
has obtained many of the largest securities class action recoveries in
history. For five consecutive years, ISS Securities Class Action
Services has ranked the Firm in its annual SCAS Top 50 Report as one of
the top law firms in both the amount recovered for shareholders and the
total number of class action settlements. Robbins Geller attorneys have
helped shape the securities laws and recovered tens of billions of
dollars on behalf of aggrieved victims. Beyond securing financial
recoveries for defrauded investors, Robbins Geller also advocates for
corporate governance reforms, helping to improve the financial markets
for investors worldwide. Please visit http://www.rgrdlaw.com
for more information.

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Contacts

Darren Robbins
Robbins Geller
800/449-4900 or 619/231-1058
djr@rgrdlaw.com

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