Apple sued by shareholders for fraudulently overstating Siri AI progress
Last Friday, Apple was hit with a proposed securities fraud class action lawsuit from shareholders, alleging the company misrepresented the timeline for integrating advanced AI into its Siri voice assistant, negatively impacting iPhone sales and stock price. The complaint claims shareholders incurred losses potentially worth hundreds of billions of dollars in the year ending June 9th, when Apple touted various product features and aesthetic upgrades but made only token AI releases.
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CEO Tim Cook, Chief Financial Officer Kevan Parekh, and former CFO Luca Maestri are also defendants in the lawsuit filed in San Francisco federal court.
Shareholders led by Eric Tucker said that at its June 2024 Worldwide Developers Conference, Apple led them to believe AI would be a key driver of iPhone 16 devices, when it launched Apple Intelligence to make Siri more powerful and user-friendly.
But they said the Cupertino, California-based company lacked a functional prototype of AI-based Siri features, and could not reasonably believe the features would ever be ready for iPhone 16s.
Shareholders said the truth began to emerge on March 7 when Apple delayed some Siri upgrades to 2026, and continued through this year’s Worldwide Developers Conference on June 9 when Apple’s assessment of its AI progress disappointed analysts.
Apple shares have lost nearly one-fourth of their value since their December 26, 2024 record high, wiping out approximately $900 billion of 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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