Siri: Apple sued by shareholders over alleged AI misrepresentation

Apple Inc. is facing a class action lawsuit from shareholders who claim the company misled them about its progress with artificial intelligence, specifically regarding the Siri voice assistant.

The lawsuit, filed on Friday in San Francisco federal court, accuses Apple of downplaying the time it would take to incorporate advanced AI into Siri, leading to a decline in iPhone 16 sales and a sharp drop in its stock price.

The complaint, led by shareholder Eric Tucker, covers investors who suffered potentially hundreds of billions of dollars in losses in the year ending June 9, 2025.

At the June 2024 Worldwide Developers Conference (WWDC), Apple touted AI as a key feature for its iPhone 16 models, with the introduction of Apple Intelligence aimed at making Siri smarter and more user-friendly.

However, shareholders argue that Apple lacked a functional prototype of AI-based Siri features and could not have realistically expected the AI upgrades to be ready for iPhone 16s.

The shareholders say the truth started to emerge on March 7, when Apple announced that some Siri updates had been delayed until 2026. 

Analysts were further disappointed when Apple’s AI progress was deemed underwhelming at the June 2025 WWDC.

Apple’s stock has plummeted by nearly 25% since its record high on December 26, 2024, erasing about $900 billion in market value.

The lawsuit names CEO Tim Cook, CFO Kevan Parekh, and former CFO Luca Maestri as defendants.

Apple has yet to respond to requests for comment.

The case is Tucker v. Apple Inc et al, U.S. District Court, Northern District of California, Case No. 25-05197.

In the lawsuit, the plaintiffs stated, “Apple led us to believe AI would be the defining feature of the iPhone 16. But it had no functional AI Siri at the time, and no basis for suggesting it would be ready.”

(Reuters)

ALSO READ TOP STORIES FROM NIGERIAN TRIBUNE