Shareholders File Lawsuit Against Apple for Allegedly Exaggerating AI Advancements

Apple is facing a lawsuit from shareholders alleging securities fraud, which was lodged on Friday. The complaint accuses the tech giant of minimizing the time required to integrate advanced artificial intelligence (AI) into its Siri voice assistant, ultimately affecting iPhone sales and the company’s stock performance.

The lawsuit encompasses shareholders who are claiming significant financial losses—amounting to potentially hundreds of billions of dollars—over the past year, ending on June 9. During this time, Apple unveiled various features and aesthetic enhancements for its products but introduced only modest updates related to AI.

Defendants in the case include Apple CEO Tim Cook, Chief Financial Officer Kevan Parekh, and former CFO Luca Maestri. Shareholders, led by Eric Tucker, allege that during the June 2024 Worldwide Developers Conference, Apple suggested that AI would significantly enhance the forthcoming iPhone 16 models.

They contend that the company misled them about the readiness of AI-powered Siri enhancements, as it reportedly lacked a functional prototype. The situation escalated on March 7, when Apple announced the postponement of some Siri upgrades until 2026.

This revelation marked the beginning of the disclosure of information that shareholders believe had been obscured. The disappointing updates regarding Apple’s AI progress continued to unfold during the recent Worldwide Developers Conference on June 9, further angering analysts and shareholders alike.

Since reaching a peak value of $900 billion in market capitalization on December 26, 2024, Apple shares have plummeted by nearly 25%, erasing a significant portion of their value. As of now, Apple has not responded to inquiries concerning the lawsuit.