Apple Inc., one of the most cherished among the FAANG stocks (Facebook, Apple, Amazon, Netflix & Google) of Nasdaq Composite, had been accused in a new lawsuit over securities fraud, which had charged the iPhone maker with alleged concealing of a decline of iPhone demands across the world, particularly in China, resulting in a $74 billion slide of market valuation at a single day followed by the reveal of the truth.
The Complaint was filed on Tuesday (April 16th), on which the investors, who had bought Apple Inc. shares at least two months prior to the declaration of a reduced quarterly revenue forecast made on January 2nd, had claimed monetary compensation over the damages.
The January 2nd’s forecast had been considered as surprising, as it had been the first time since 2007 the iPhone maker had slashed their quarterly revenue forecast amid a gloomier demand, and the Apple Inc. share prices had nosedived as much as 10 percent at the next day, drowning more than 40 percent of its market capitalization of $1.1 trillion reached during October peak.
City of Roseville Employees’ Retirement System, a Michigan-based pension plan, had filed the lawsuit on the federal court of Oakland, California, and the case was represented by Robbins Geller Rudman & Down, a class-action specialist on Securities trading lawsuits.
So far, spokesmen from Apple Inc. have declined to make any comment regarding the issue.