Reuters (1/30, Vengattil, Nellis, Lynch, Bellon) reports that Bloomberg has revealed that the SEC and DOJ will investigate if Apple Inc violated securities laws over its late disclosure of older model iPhones slowdowns due to declining batteries. The chairman of a US Senate committee “overseeing business issues” has asked Apple to answer questions regarding its disclosure. USA Today (1/30, Graham, 8.23M) reports on “battery gate” and the government’s desire to know if Apple violated securities law by not disclosing slowdowns to customers. Lawyers have proposed a class-action suit against the company. Apple is appeasing customers by offering new iOS software “that will allow consumers to check on the status of their batteries and turn off the battery-slowdown feature in older phones.”
The Washington Post (1/31, Tsukayama, 11.19M) reports that “many consumers have criticized the firm for not being more forthcoming. Apple apologized in December for slowing down iPhones without openly informing customers of the change.” The company “faces several lawsuits over the software, and government officials in Italy, France and South Korea have opened investigations into the issue.”
The Wall Street Journal (1/30, Viswanatha, Mickle, Michaels, Subscription Publication, 6.45M) reports on Apple’s dual legal probes and its slight decline in stock prices. Apple’s offer of cheaper replacement batteries has not appeased the government or consumers. Apple’s stock was down 4 percent due its recent revelations with weaker Q1 results also expected due to less demand than expected for the iPhone X.
Bloomberg News (1/30, Schoenberg, Robinson, Gurman, 3.31M) reports that the “investigators are concerned that the company may have misled investors about the performance of older phones.” The investigation “is in early stages...and it’s too soon to conclude any enforcement will follow.”
CNN Money (1/30, Fiegerman, Scannell, 3.59M) also reports on the investigation.
