A class action lawsuit accusing Apple CEO Tim Cook of defrauding shareholders by concealing the declining demand for iPhones in China was denied by a US judge.

After a one-day collapse that reduced Apple's market value by $74 billion, shareholders backed by a British pension fund can now file a lawsuit, thanks to the US District Judge Yvonne Gonzalez Rogers' ruling late Monday night.

The case was prompted by Cook's statement on an analyst call on November 1, 2018, that while Apple was experiencing sales pressure in countries with weak currencies like Brazil, India, Russia, and Turkey, "I would not put China in that category."

Apple abruptly cut its quarterly sales projection by up to $ 9 billion on January 2, 2019, blaming trade concerns between the United States and China. A few days later, the company instructed suppliers to reduce manufacturing.

The following day, shares of Apple, based in Cupertino, California, plummeted 10 percent as a result of the company's first decreased sales projection since the 2007 release of the iPhone.

In February 2022, the lawsuit was granted class action status officially. Norfolk County Council and other shareholders argue that the revised guidance was released too late and that Apple should have anticipated the problem given that it addressed it in China just days after Cook's statements.

Judge Rogers, located in Oakland, California, claimed that jurors may logically conclude that Cook was speaking about Apple's sales prospects in China and not previous results or the effects of currency fluctuations.

Shawn Williams, a lawyer for the shareholders, said: "We are pleased with the ruling and look forward to presenting the facts to a jury."

The judge added that Apple was aware of China's deteriorating economy and had information pointing to potential declines in demand before Cook's comment.

The Norfolk County Council, which is based in Norwich, England, and serves as the Norfolk Pension Fund's administering authority, is the primary plaintiff.

Since January 2019, Apple's share price has roughly quintupled, giving the business a market worth of close to $3 trillion.