Apple Faces Shareholder Lawsuit Over Alleged AI Misrepresentation

Apple is facing a proposed securities fraud class action lawsuit from shareholders who claim the company overstated its progress in artificial intelligence, leading to significant financial losses.

Credit: APPLE

The lawsuit, filed Friday in San Francisco federal court, alleges Apple misled investors about the timeline for integrating advanced AI into its Siri voice assistant, which negatively impacted iPhone sales and the company’s stock performance.

The complaint covers shareholders who incurred losses in the year ending June 9, 2025. During this period, Apple introduced several product updates but made only modest AI enhancements.

Chief Executive Officer Tim Cook, Chief Financial Officer Kevan Parekh, and former CFO Luca Maestri are named as defendants in the case.

Shareholders, led by Eric Tucker, said Apple’s June 2024 Worldwide Developers Conference gave the impression that AI would be a major feature of the upcoming iPhone 16. The company launched Apple Intelligence to enhance Siri’s capabilities.

Credit: APPLE

However, the lawsuit claims Apple did not have a working prototype of the AI-based Siri features and had no reasonable basis to believe they would be ready for the iPhone 16.

The alleged misrepresentation began to unravel on March 7, when Apple delayed some Siri upgrades to 2026. Disappointment continued at the June 9 conference, where analysts were underwhelmed by Apple’s AI progress.

Since reaching a record high on Dec. 26, 2024, Apple shares have dropped nearly 25%, erasing about USD 900 billion in market value.

The case is Tucker v. Apple Inc et al, U.S. District Court, Northern District of California, No. 25-05197.

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• Apple sued for allegedly overstating AI progress in Siri

• Shareholders claim losses tied to misleading statements

• Lawsuit names CEO Tim Cook and other executives

Source: REUTERS