Apple sued by shareholders for allegedly overstating AI progress
Apple Faces Lawsuit from Shareholders Over Siri AI Integration
Apple is facing a lawsuit from shareholders in a proposed securities fraud class action. The lawsuit alleges that Apple downplayed the time needed to integrate advanced artificial intelligence into its Siri voice assistant, resulting in decreased iPhone sales and a drop in its stock price.
The complaint, filed in San Francisco federal court, covers shareholders who experienced significant losses in the year ending June 9. This period coincided with Apple’s introduction of new features and aesthetic improvements to its products while keeping AI changes minimal.
CEO Tim Cook, CFO Kevan Parekh, and former CFO Luca Maestri are also named as defendants in the lawsuit.
Shareholders, led by Eric Tucker, claim that Apple misled them at the June 2024 Worldwide Developers Conference by suggesting that AI would play a significant role in the iPhone 16 devices. However, the shareholders argue that Apple did not have a functional prototype of AI-based Siri features and could not realistically deliver these features for the iPhone 16.
The truth, according to shareholders, began to surface on March 7 when Apple announced delays in some Siri upgrades to 2026. This disappointment continued through the recent Worldwide Developers Conference on June 9 when Apple’s AI progress fell short of analysts’ expectations.
Since reaching a record high on December 26, 2024, Apple’s shares have plummeted by nearly a quarter, erasing approximately $900 billion in market value.
The case, known as Tucker v. Apple Inc et al, is being heard in the U.S. District Court, Northern District of California, with the case number 25-05197.
