Apple was sued on Friday by shareholders in a proposed securities fraud class motion that accused it of downplaying how long it needed to integrate advanced artificial intelligence into its Siri voice assistant, hurting iPhone sales and its stock price.
The criticism covers shareholders who suffered potentially a whole bunch of billions of dollars of losses within the yr ending June 9, when Apple introduced several features and esthetic improvements for its products but kept AI changes modest.
Apple didn’t immediately reply to requests for comment. CEO Tim Cook, Chief Financial Officer Kevan Parekh and former CFO Luca Maestri are also defendants within 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 consider AI can 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, Calif.-based company lacked a functional prototype of AI-based Siri features, and couldn’t reasonably consider the features would ever be ready for iPhone 16s.
Shareholders said the reality began to emerge on March 7 when Apple delayed some Siri upgrades to 2026, and continued through this yr’s Worldwide Developers Conference on June 9 when Apple’s assessment of its AI progress disillusioned analysts.
Apple shares have lost nearly one-fourth of their value since their Dec. 26, 2024 record high, wiping out roughly $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.
Apple was sued on Friday by shareholders in a proposed securities fraud class motion that accused it of downplaying how long it needed to integrate advanced artificial intelligence into its Siri voice assistant, hurting iPhone sales and its stock price.
The criticism covers shareholders who suffered potentially a whole bunch of billions of dollars of losses within the yr ending June 9, when Apple introduced several features and esthetic improvements for its products but kept AI changes modest.
Apple didn’t immediately reply to requests for comment. CEO Tim Cook, Chief Financial Officer Kevan Parekh and former CFO Luca Maestri are also defendants within 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 consider AI can 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, Calif.-based company lacked a functional prototype of AI-based Siri features, and couldn’t reasonably consider the features would ever be ready for iPhone 16s.
Shareholders said the reality began to emerge on March 7 when Apple delayed some Siri upgrades to 2026, and continued through this yr’s Worldwide Developers Conference on June 9 when Apple’s assessment of its AI progress disillusioned analysts.
Apple shares have lost nearly one-fourth of their value since their Dec. 26, 2024 record high, wiping out roughly $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.
