Summary
- Apple shareholders have filed a case against Apple for misrepresenting their progress towards AI and the new Siri.
- The lawsuit alleges that delays in Apple Intelligence negatively impacted iPhone sales and the company's stock price.
- Apple CEO Tim Cook, CFO Kevan Parekh and former CFO Luca Maestri have been named as defendants in the case.
Apple is facing continued backlash again over delays in Apple Intelligence. And this time, it's their shareholders who have proposed a class action lawsuit against the Cupertino company.
As shared by Reuters, Apple shareholders have filed a lawsuit in San Francisco federal court that accuses Apple of "downplaying how long it needed to integrate advanced artificial intelligence into its Siri voice assistant". The shareholders complained that the delays in Apple Intelligence affected iPhone sales negatively, thus hurting the company's stock price.
Apple's shareholders claim that they suffered "hundreds of billions of dollars of losses" in the past year, ending June 9. The lawsuit accuses that the Cupertino company led the shareholders to believe that AI will play a huge factor in driving iPhone 16 sales. Since December 2024, Apple has reportedly lost one-fourth of their market value, roughly $900 billion.
The complaint says the investors were not aware of the fact that Apple didn't have a working prototype of AI-based Siri features at WWDC 2024. Investors says it only got clearer in March this year that Apple's AI features will arrive sometime next year. It's in line with what we learned recently that the much-anticipated Siri upgrade could come with iOS 26.4.
The lawsuit has named Apple executives CEO Tim Cook, CFO Kevan Parekh and former CFO Luca Maestri as defendants who are yet to respond to the complaint. The case will be tried in the U.S. District Court, Northern District of California.
Source
Reuters
