Apple has accused in a US securities fraud suit on iPhone sales in China

(Reuters) – Apple Inc. has been accused in a new lawsuit for securities fraud to have concealed a drop in demand for iPhones, particularly in China, resulting in a $ 74-billion decline in its value once the truth has become known. Tuesday's lawsuit seeks damages for investors who bought Apple shares in the two months to Jan. 2, Chief Executive Officer Tim Cook unexpectedly cut income forecasts quarterly of Apple up to $ 9 billion, mainly because of the intensification of the trade war with China.

This is the first time since the launch of the iPhone in 2007 that Apple has reduced its revenue forecast.

Apple's stock price fell 10% the next day, leaving California's Cupertino California's market value around 40% lower than the $ 1.1 trillion top three months earlier.

Cook and Luca Maestri, CFO, have also been named as defendants in the proposed class action. Apple did not immediately respond Wednesday to requests for comment.

The lawsuit was filed in federal court in Oakland, California, by the retirement pension system of the City of Roseville, a Michigan pension plan.

He is represented by Robbins Geller Rudman & Dowd, a specialist in securities class actions.

According to the complaint, the demand for iPhone was down because of commercial tensions between the United States and China and the growing preference of customers to replace the batteries of old iPhones, which prompted Apple to reduce orders from suppliers for new iPhones and prices to reduce inventory.

But none of this was disclosed at the right time, according to the complaint, in part because of Apple's decision on November 1, 2018 to stop disclosing unit sales for iPhones.

Asked that day during a conference call about Apple's performance in emerging markets, Mr. Cook reported downward pressure on sales in Brazil and India, but said: "I would not put not China in this category, "says the complaint.

The lawsuit was filed the same day Apple settled all of its litigation with Qualcomm Inc. Their litigation focused on Qualcomm's mobile device chip patents and the amount Apple would have to pay to use the technology.

The case concerns the retirement system for employees of the City of Roseville c. Apple Inc et al., US District Court, District No. 19-02033 Northern California.