Apple is currently dealing with a new legal challenge as its own shareholders have filed a proposed securities fraud class action in federal court. The lawsuit alleges that Apple misled investors about the timeline and capabilities of its artificial intelligence features, particularly those related to Siri and the iPhone 16.
The shareholders claim that Apple downplayed the timeframe for delivering AI upgrades introduced as part of Apple Intelligence. This purported misrepresentation led to a decline in iPhone sales and a notable drop in the company's stock value. The lawsuit, filed in San Francisco, names CEO Tim Cook, CFO Kevan Parekh, and former CFO Luca Maestri as defendants.
Investors were supposedly led to believe that the iPhone 16 lineup would boast enhanced Siri experiences under Apple Intelligence. However, the plaintiffs argue that Apple did not have a functional version of these features when the announcements were made during the June 2024 Developers Conference.
Following delays in the release of new Siri capabilities, Apple's stock value took a hit. The company postponed some of the promised AI features to 2026, leading to disappointment among shareholders and analysts. Consequently, Apple's shares dropped significantly from their peak in late 2024.
This legal action adds to Apple's existing legal troubles, including ongoing disputes with Epic Games and dissatisfied iPhone 16 buyers. The company faces scrutiny over its advertising of Apple Intelligence features and may need to work towards rebuilding trust with consumers.
