The settlement proposal now awaits approval from U.S. District Judge Yvonne Gonzalez Rogers in California.

The lawsuit stemmed from an earnings call on November 1, 2018, where Cook stated that Apple was facing pressure in emerging markets, including Turkey, India, Brazil, and Russia. However, he did not mention China as one of the countries experiencing weakening demand. Cook specifically highlighted the strength of Apple's business in China during that call, citing a 16% growth and strong double-digit growth for the iPhone.

A few months later, in January 2019, Cook sent out a letter to investors revealing that Apple's revenue for the fourth quarter of 2018 would be around $84 billion, lower than the initial guidance of $89 billion to $93 billion. The drop in revenue was primarily attributed to the slowing economy in Greater China, according to Cook's letter.

Shareholders alleged that Cook was aware of the declining demand for iPhones in China at the time of the earnings call but failed to disclose it, leading to a drop of around 25% in Apple's share price between November 2018 and January 2019. Apple, however, denied any wrongdoing and maintained that the settlement was agreed upon to avoid further costs and time associated with a prolonged litigation process.

If approved, the $490 million settlement would be paid out to the affected shareholders. Critics of the settlement argue that this cost will ultimately be passed on to consumers, potentially resulting in higher prices for Apple products.

The lawsuit highlights the challenges faced by Apple in a rapidly changing market, particularly in China, which has been a crucial market for the company. The outcome of the settlement and any implications for Apple's future strategies will be closely monitored by investors and industry observers.

Disclaimer: The information provided in this article is based on the court filing and public statements made by Apple and its CEO, Tim Cook.