Apple to pay $490 million to settle allegations that it misled investors about iPhone sales in China

Apple has agreed to pay $490 million to settle a class-action lawsuit alleging CEO Tim Cook misled investors about a steep downturn in iPhone's sales in China that culminated in a jarring revision to the company's revenue forecast.

Cook signaled that the new iPhones were off to a good start during an investor conference call in early November 2018, according to the complaint.

That reassurance dissolved into a huge letdown on Jan. 2, 2019 when the Cook issued a warning that Apple's revenue for the just-completed quarter would fall $9 billion below management's forecast for the period. What's more, virtually all of the sales drop was traced to weak demand in China.