Apple Inc. $490M Securities Settlement for China Business Claims

If you purchased or otherwise acquired Apple common stock or call options on Apple common stock, or sold put options on Apple common stock between November 2, 2018, and January 2, 2019, you may be eligible to claim a portion of a $490 million class action settlement.

Apple Inc. has agreed to pay $490 million to settle a class action lawsuit for alleged violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. The lawsuit claims that Apple made materially false and misleading statements and omissions about the demand for the newly-released iPhone and Apple’s business in China.

Can I Claim an Award?

The settlement class includes all persons who purchased or otherwise acquired the publicly traded securities of Apple, including purchasers of Apple call options and sellers of Apple put options, during the period from November 2, 2018, through January 2, 2019, inclusive, and who suffered damages by Defendants’ alleged violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.

Class members must have purchased or acquired Apple common stock or call options on Apple common stock, and/or sold put options on Apple common stock during the specified period and held through the issuance of at least one corrective disclosure. The corrective disclosures were made on November 5, 2018, November 12, 2018, and January 2, 2019 (after the close of trading).

• Purchasers of Apple common stock
• Purchasers of Apple call options
• Sellers of Apple put options

What Awards Can Class Members Claim?

The settlement provides a $490 million fund to be distributed among class members who submit valid claims. The amount each class member will receive depends on several factors, including the total value of Apple securities represented by the valid Proof of Claim forms submitted and the value of the individual’s claim as calculated under the Plan of Allocation.

The Plan of Allocation is designed to equitably distribute the Net Settlement Fund among class members based on their respective alleged economic losses resulting from the securities law violations alleged in the Action. The allocation is based on the estimated amount of alleged artificial inflation in the prices of each of the Apple securities that was allegedly proximately caused by Defendants’ alleged materially false and misleading statements and omissions.

• Apple Common Stock: The average distribution per common share under the Plan of Allocation is approximately $1.33 before deduction of any taxes on the income earned on the Settlement Amount thereof, notice and administration costs, and the attorneys’ fees and expenses as determined by the Court.
• Apple Call Options: The average distribution per underlying share with respect to a damaged options contract is approximately $0.11 before deduction of any taxes on the income earned on the Settlement Amount thereof, notice and administration costs, and the attorneys’ fees and expenses as determined by the Court.

For example, if a class member purchased 100 shares of Apple common stock during the Class Period and held through one of the corrective disclosures, their Recognized Loss Amount would be calculated based on the decline in inflation during the holding period and the purchase price minus the sale price or the average closing price during the 90-day look-back period, whichever is less.

Is Proof Required to Claim the Reward?

Yes, claimants need to provide proof to claim an award. To be eligible to receive a payment from the settlement, you must submit a Proof of Claim form along with documentation to support your claimed transactions. This includes stockbroker confirmation slips, stockbroker statements, or other documents adequately evidencing your transactions in Apple publicly traded securities.

• Proof of purchase or acquisition of Apple common stock or call options
• Proof of sale of Apple put options

How to Claim Your Award

To claim your award, you must submit a Proof of Claim form. You can file a claim online by visiting the online claim form page. Alternatively, you can submit your claim by mail. Complete and sign the Proof of Claim form in its entirety, include all required supporting documentation, and mail it so that it is received no later than October 4, 2024, to:

2019 Apple Securities Settlement

Claims Administrator

c/o Gilardi & Co. LLC

P.O. Box 301135

Los Angeles, CA 90030-1135

Submitting a Claim

Follow these steps to submit your claim:

1. Visit the online claim form page or download the Proof of Claim form.
2. Complete the form with all required details, including your personal information and transaction details.
3. Attach copies of stockbroker confirmation slips, stockbroker statements, or other documents evidencing your transactions.
4. Sign the form and submit it online or mail it to the Claims Administrator at the address provided above.
5. Ensure that your claim is submitted online or received by mail no later than October 4, 2024.

How do I Get Paid?

Once your claim is approved, you will receive your payment via check or electronic payment. Ensure that the payment details provided in your claim form are accurate to avoid any delays in receiving your award.

$490,000,000 Settlement Fund Breakdown

The total settlement amount of $490 million will be distributed among class members who submit valid claims after deducting taxes, tax expenses, notice and claims administration expenses, and approved fees and expenses.

The settlement fund breakdown is as follows:

• Total Settlement Amount: $490,000,000
• Attorneys’ Fees: Not to exceed 25% of the Settlement Amount
• Litigation Expenses: Not to exceed $3,000,000
• Representative Parties’ Award: Up to $73,000 in the aggregate

Important Dates

• Fairness Hearing: September 17, 2024, at 2:00 p.m.
• Deadline to File a Claim: October 4, 2024

When will Awards be Paid?

Awards will be paid after the Court approves the settlement and any appeals are resolved. The exact timeline for payment will depend on the resolution of any appeals and the time required to process all claims.

Why is There a Class Action Settlement?

The settlement resolves allegations that Apple Inc. made materially false and misleading statements and omissions about demand for the newly-released iPhone and Apple’s business in China, in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. By agreeing to the settlement, Apple Inc. avoids the distraction, costs, and risks of continuing the litigation, and class members receive compensation without further delay.

What Happens Next?

Next, the Court will hold a Fairness Hearing on September 17, 2024, to decide whether to approve the settlement. If the settlement is approved, the Claims Administrator will begin processing claims and distributing awards to eligible class members.