Norfolk Local Government Pension Fund gets £385m (for all claimants?) from Apple in iPhone row

Hat tip UNISON, Pension Age and BBC

Amazing and massive payout. Well done to everyone involved. I understand that the £385 million settlement is not just for the Norfolk Fund but not sure what they will get?

I have 30 years of pensionable service in the Norfolk Scheme as an admitted body member (long story why). While members of the Norfolk scheme should not expect a pay out (also I do not know if Apple or anyone else are contesting this payment? It would appear not). 

The Norfolk scheme is a near £5 billion fund with over 100,000 members. However, the money should help with funding for present and future pensions. I will try and find out more. 

Hopefully, this payment will help break down the "mistrust" of such USA Class actions amongst Council Pension funds. It is such a very alien concept to risk adverse local authorities, which I do get but what is the downside? 

BBC report 15.3.24 :-

"Apple has agreed to pay $490m (£385m) to settle a lawsuit led by Norfolk County Council.

The class action alleged the tech giant's boss, Tim Cook, defrauded shareholders by covering up lower demand for iPhones in China.

The council said a pension fund it administered lost money as a result of Mr Cook's actions.

In a statement, the Norfolk Pension Fund said it was "very proud of this recovery for investors".

The statement continued: "We are mindful that we are stewards of pensions relied upon by thousands of families and individuals.

"When and where it's warranted, we will take decisive action to recover losses when our participants' investments are harmed by fraud."

The BBC has approached Apple for comment.

The class action lawsuit - meaning it is on behalf of a group of claimants - centred around comments made by Apple's chief executive Tim Cook.

He told investors on 1 November 2018 that there was "sales pressure" in some countries but he "would not put China in that category".

However, two months later, on 2 January 2019, Apple downgraded its quarterly revenue forecast, citing tensions between China and the US - leading to a sharp drop in Apple's share price.

Within that two-month window, reports emerged that Apple had told its top smartphone assemblers to "halt plans for additional production lines" for the recently released iPhone XR.

The claimants in this case were all investors who had bought shares between November 2018 and January 2019.

They said they lost money because they had been falsely reassured by Mr Cook's comments in November.

The case was originally brought against Apple and Mr Cook by the US city of Roseville. Norfolk County Council, which administers the £4.9bn Norfolk Pension Fund, took over the lawsuit as lead plaintiff in 2020.

Apple had fought the litigation, and a trial was scheduled for later this year. This preliminary settlement - filed on Friday with the U.S. District Court in Oakland, California - should mean that will no longer happen, however it still requires approval by a judge.

It is not known what portion of the settlement Norfolk County Council will receive.

Apple posted $97 billion of net income in the last fiscal year. The pay-out equals a little under two days of profit for what is one of the world's wealthiest companies".

Pay 2p extra per teeshirt to save workers lives

Check out the TUC website Going to Work and the campaign it is running with LabourStart to make Garment factories in Bangladesh safe.

They point out that the people responsible for poverty wages and very poor safety standards are not consumers in the UK looking for bargain clothes but the global brands and retailers who set prices and therefore wage rates and safety standards.

If the £27 per month wages of these workers were to be doubled this would only cost an extra 2p per tee shirt sold in the UK. They would then not be so desperate for work regardless of conditions. Effective health and safety at work would cost even less. Especially if free trade unions were allowed in Bangladesh who could drive up safety standards.

All pension fund trustees should be scrutinising their fund managers about what they are doing to make sure that any investments they hold in any part of the garment supply chain (not just factories and shops but also finance, raw materials, construction, design, transport and insurances) act responsibly and make sure all workers are properly paid and safe. This is not just a matter affecting Bangladesh.

We have factories making Apple iPADS in China who treat their workers so badly that they have to put up suicide nets around high buildings.

Trustees own these assets on behalf of their beneficiaries and must take personal responsibility for what is done in their name and on their behalf. It is also a given in my book that investments in well managed companies that to not allow their supply chain workforce to be killed, do not employ child labour, do not bribe local officials nor destroy the environment - will produce superior long term returns for the pension fund.

The 12 TAX DODGERS of Christmas

Hat tip "I support Public Services - don't let the Con Dems destroy them"

Update: Starbucks agrees to pay more tax. Better late than never I suppose. Public anger has driven this. Now lets drive this anger against Amazon and all the rest of the thieves. Looks like I may have to leave blogger!

The death of Apple Co-founder and former CEO, Steve Jobs

Off message and late - Last Thursday I was rushing to a pension trustee meeting in central London when I noticed a crowd and TV cameras gathered outside the Apple Store in Regent Street. The Co-founder and former CEO of Apple, Steve Jobs had just died of cancer aged 56. Some of the people standing outside did seem genuinely upset

I must admit to being slightly bewildered at such emotion being shown to someone who must have been a total stranger to these people. It is an absolute tragedy to the family and friends of Mr Jobs (who was no doubt a brilliant man) that he should die at such a relatively young age and a loss to the Company and its employees but......maybe it is because I have never owned or used an Apple product and cannot imagine for a moment being so moved, as to place flowers outside a Microsoft establishment upon hearing of the no doubt sad demise of Mr Gates.

iPad: A Rotton Apple? Exploitation of Workers by Foxconn

This shocking video exposes the Apple iPad production plant in China run by Foxconn.  The opening sequence is pretty horrific with some graphic pictures.   It seems pretty clear that Apple allows Foxconn to treat its workers with contempt.  A company that has to fit anti-suicide nets to its factory living quarters.  Apple has a responsibility to sort out its subcontractors.

The video was produced by SACOM the campaigning academic group. 

Hat tip to Johninnit who is in a genuine ethical delemma about whether or not he can in all conscience upgrade his existing smartphone. 

I wonder what pension funds who will own shares in Foxcann and Apple can do? Surely as owners of Apple and Foxconn we too have a responsibility for what is being done with our own money?