Apple told suppliers to curb production a few days after Cook spoke, and on Jan. 2, 2019, unexpectedly cut its quarterly revenue forecast by up to $9 billion, which Cook blamed in part on pressure on China's economy from U.S.-China trade tensions.
The lowered revenue forecast was the first by Cupertino, California-based Apple since the iPhone's launch in 2007. Shares of Apple fell 10% the next day, erasing $74 billion of market value.
Apple and Cook have said there was no proof they defrauded or intended to defraud the plaintiffs. The company did not immediately respond on Thursday to requests for comment.
In a 23-page decision, Rogers said shareholders plausibly alleged that Cook's statements on the analyst call about China were materially false and misleading.
She said that while Cook might not have known specifics about "troubling signs" in China that the company had begun seeing, it "strains credulity" he would have been in the dark about the trade tensions and their possible impact on Apple.
The plaintiffs raised a "strong inference" that Cook knew about the risks when discussing China on the analyst call, and a "cogent and compelling inference that Cook did not act innocently or with mere negligence," Rogers wrote.
Rogers, who works in Oakland, California, also dismissed claims related to demand for the iPhone XS and XS Max.
The plaintiffs are led by the Norfolk County Council as Administering Authority of the Norfolk Pension Fund, located in Norwich, England.
The case is In re Apple Inc Securities Litigation, U.S. District Court, Northern District of California, No. 19-02033.
(Reporting by Jonathan Stempel in New York; Editing by Matthew Lewis)
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.