Shareholders sue Apple for allegedly overhyping AI: Report

Apple is facing a proposed securities fraud class action lawsuit from shareholders who allege the company misled investors about the progress of its artificial intelligence (AI) integration, particularly within its Siri voice assistant, according to a recent report by Reuters.

The complaint, filed on June 20 in San Francisco federal court, claims that the company's statements about AI development resulted in significant financial losses for shareholders.

The lawsuit asserts that Apple downplayed the time required to implement advanced AI features, especially those unveiled at its 2024 Worldwide Developers Conference (WWDC). 

According to the report, shareholders claim the company led them to believe that AI would be a central component of its upcoming iPhone 16 lineup, following the announcement of "Apple Intelligence" - a suite of features aimed at making Siri more powerful and user-friendly.

According to the complaint, Apple lacked a functioning prototype of the enhanced AI-powered Siri and had no reasonable basis to suggest the features would be ready in time for the iPhone 16 launch. The suit alleges that the reality began to surface on March 7, 2025, when Apple delayed key Siri updates until 2026. Shareholders argue that further concerns were confirmed during this year's WWDC on June 9, when Apple's AI developments failed to meet analyst expectations.

Named defendants include Apple CEO Tim Cook, Chief Financial Officer Kevan Parekh, and former CFO Luca Maestri. Apple has not yet issued a public response to the litigation.

The lawsuit claims that Apple's misstatements contributed to a significant drop in share value. Since reaching a record high on 26 December 2024, the company's stock has reportedly fallen by nearly 25 percent, erasing approximately $900 billion in market value.