"Absent some natural disaster or other intervening reason, it is simply implausible that Cook would not have known that iPhone demand in China was falling mere days before cutting production lines," Rogers wrote.
According to Reuters, U.S. District Judge Yvonne Gonzalez Rogers dismissed most claims in the lawsuit in but ruled that Apple can be sued by shareholders over comments that Cook made indicating strong iPhone demand — especially in China — just a few days before the company curbed production at some of its manufacturers.
When Apple issued a revenue guidance in January 2019, the stock prices fell and led to material losses for shareholders.
The lawsuit centers around claims of "misleading" statements made by Apple executives, including CEO Tim Cook in 2018 that lead to an artificially inflated share price.
Apple must face part of a lawsuit alleging that it fraudulently concealed weakening iPhone demand in the fall of 2018, a judge ruled on Tuesday.