Suit Against Apple Alleges Misrepresentation of Cube, G4 Dual Processor
Press release from the issuing company
SAN DIEGO--Oct. 16, 2001--Milberg Weiss today announced that a class action has been commenced by an institutional investor in the United States District Court for the Northern District of California on behalf of purchasers of Apple Computer Inc. common stock during the period between July 19, 2000 and Sept. 28, 2000 (the "Class Period'').
The complaint charges Apple and its CEO with violations of the Securities Exchange Act of 1934. The complaint alleges that on 7/18-19/00, Apple introduced its new Power Mac G4 Dual Processor, G4 Cube and iMac personal computers, representing that they were exceptionally powerful, fast and attractive, coming with exceptionally attractive designs and containing new and revolutionary features. At this time, Apple represented that the development of these new products was completed, they were ready for mass production and would be available in quantity very shortly. Apple claimed this would result in Apple achieving strong revenue and earnings per share ("EPS'') growth in its 4thQ F00 (to end 9/30/00) and F01. As a result, Apple's stock climbed to a Class Period high of $64-1/8 in early 9/00, when four top Apple officers sold 370,000 shares of their Apple stock for $22 million. Suddenly, just 20-25 trading days later, on 9/28/00, Apple shocked investors by revealing a huge 4thQ F00 revenue and EPS shortfall due to very poor sales to its education (K-12) market and poor consumer acceptance of its new personal computer products (some of which had been late to market, had defects and lacked features which were essential for market success), resulting in the accumulation of excessive inventories of finished goods in Apple's distribution channel and Apple having to cancel component part orders and, thereby, incur financial penalties. As rumors of Apple's troubles circulated prior to and then following Apple's shocking disclosure, Apple's stock collapsed from $61-3/64 on 9/20/00 to $25-3/8 on 9/29/00, continuing to fall to as low as $17 and then to $13-5/8, as investors absorbed the full impact of these shocking revelations, a stock decline that wiped out over $10 billion of Apple's market capitalization in just a few days.
Plaintiff seeks to recover damages on behalf of all purchasers of Apple common stock during the Class Period (the "Class''). The plaintiff is represented by Milberg Weiss Bershad Hynes & Lerach LLP, who has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.
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