Possible class action suit takes aim at Apple’s falling share prices

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Big pile of cash underneath an Apple logo.
Apple's stock has struggled over the past several months.
Photo: Ste Smith/Cult of Mac

Investing in the stock market invariably carries a degree of risk. But one New York-based legal firm isn’t happy with the way Apple conducted itself during the recent stock-plummeting revelations about the company’s missed earnings guidance.

The firm of Bronstein, Gewirtz & Grossman, LLC is investigating potential claims from shareholders that Apple might have violated federal securities laws.

According to the complaint, Apple CEO Tim Cook mislead investors when he stated, back in November, that, “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.” Earlier this week, Apple revealed that, in fact, the iPhone had not performed as well as hoped during the most recent quarter — and problems in China were a big reason for this.

The law firm is asking anyone “aware of any facts relating to this investigation,” or who purchased Apple shares, to contact the law firm. Bronstein, Gewirtz & Grossman, LLC specializes in corporate litigation, along with securities arbitration.

This is the second investigation into the matter launched by a New York-based law firm. Investor rights law firm Bernstein Liebhard LLP hit Apple with a similar complaint earlier this week.

Apple is no stranger to class action lawsuits. Perhaps the largest of these ever leveled at the company took place was filed last year in South Korea as part of the iPhone slowdown allegations. It eventually grew to include 370,000 individuals — or the equivalent of one out of every 138 people who live in the country.

Source: Bronstein, Gewirtz & Grossman, LLC

Via: MacRumors