Apple is being sued over its valuation of its core business, software and services, and is asking a judge to stop the company from making a valuation that includes its valuation and other data.
Apple’s valuation of core business software and iOS is expected to be announced in September, the Wall Street Journal reports.
The lawsuit seeks to prevent the valuation, which is based on software and other business information generated by Apple’s customers, from being used to make financial forecasts and valuations for the company.
Apple is seeking to halt the valuation for two reasons:The suit argues that the valuation is a misleading and deceptive presentation of the company’s value, which “could mislead potential investors into believing that Apple is valued at a higher value than it really is,” the Journal reports, citing an unnamed person familiar with the matter.
Apple has long argued that its valuation should not be used to justify the company or its businesses.
The valuation of Apple software and iPhones is also not disclosed in publicly available financial documents, and analysts and investors are not permitted to discuss the valuation in detail, the Journal says.
Apple stock is up nearly 20% in after-hours trading after the Journal report.