On May 3, 2024, Apple Inc. filed a Form 8-K report with the SEC, announcing the preliminary approval by the U.S. District Court for the Northern District of California of a proposed settlement for consolidated derivative lawsuits against the company. The lawsuits, which began in 2019, alleged that Apple's executives breached their fiduciary duties by releasing software updates that slowed iPhone performance without customer consent and by making misleading statements about iPhone sales and demand in China. The settlement includes corporate governance reforms that Apple has agreed to adopt, implement, and maintain. These reforms aim to enhance risk oversight, iOS update transparency, and investor disclosure oversight. The settlement also involves a Fee and Expense Amount of $6,000,000 to Plaintiffs' Counsel and Service...Show More

On May 3, 2024, Apple Inc. filed a Form 8-K report with the SEC, announcing the preliminary approval by the U.S. District Court for the Northern District of California of a proposed settlement for consolidated derivative lawsuits against the company. The lawsuits, which began in 2019, alleged that Apple's executives breached their fiduciary duties by releasing software updates that slowed iPhone performance without customer consent and by making misleading statements about iPhone sales and demand in China. The settlement includes corporate governance reforms that Apple has agreed to adopt, implement, and maintain. These reforms aim to enhance risk oversight, iOS update transparency, and investor disclosure oversight. The settlement also involves a Fee and Expense Amount of $6,000,000 to Plaintiffs' Counsel and Service Awards of $5,000 to each plaintiff. A Settlement Fairness Hearing is scheduled for July 16, 2024, where the court will consider final approval of the settlement. Shareholders as of April 29, 2024, have the right to object to the settlement and may appear at the hearing. The report also includes details on the background of the lawsuits, the mediation process, and the terms of the settlement.