Apple sued by shareholders over misleading AI progress disclosures

Apple is facing a lawsuit from its shareholders for allegedly downplaying the time it would take to integrate advanced artificial intelligence (AI) into Siri, Apple’s intelligent personal assistant, hurting iPhone sales and its stock price.

The complaint, which was filed in San Francisco federal court, accuses Apple’s top management, including CEO Tim Cook, CFO Kevan Parekh, and former CFO Luca Maestri, of misrepresentation and securities fraud, The Economic Times reports.

Shareholders, led by Eric Tucker, claim that during the June 2024 Worldwide Developers Conference (WWDC), Apple positioned its “Apple Intelligence” platform as a key driver for the upcoming iPhone 16, with enhanced Siri capabilities expected in time for launch.

Yet, the company pushed the release of its advanced Siri features to 2026, which, according to the lawsuit, was not properly disclosed to investors.

During the 2025 WWDC, Apple didn’t offer any additional updates about those features, either.

According to the lawsuit, the delay cost shareholders hundreds of billions of dollars for the fiscal year ending June 9, 2025. During that period, Apple introduced several features and aesthetic improvements for its products, but kept AI changes modest.

Shareholders argue that at the time, the company didn’t even have a working model of the promised features and “could not reasonably believe the features would ever be ready” for the iPhone 16 lineup.

Since the December 26, 2024, peak, Apple’s shares have lost almost a quarter of their value, meaning a loss of approximately $900 billion.

The news follows another lawsuit against Apple, filed by Danyell Shin, a plaintiff who downloaded Swiftcrypt, a cryptocurrency trading app, from the App Store in 2024. Shin lost $80,000 worth of deposits in a “pig butchering” scam, and now claims that Apple misled its users by making them think that the applications were “safe and trusted.”