Investors Sue Apple: Company Misled Us About AI Integration in Siri, Causing Stock Decline
In a surprising development, tech giant Apple (AAPL.O) is facing a major class-action lawsuit filed by its shareholders. The lawsuit accuses the company of securities fraud, alleging that it misled investors about the integration of advanced artificial intelligence technologies into its voice assistant, Siri. According to the plaintiffs, this misrepresentation negatively impacted iPhone sales and caused a significant drop in the company’s stock price.
The plaintiffs claim that Apple created a misleading impression during its Worldwide Developers Conference (WWDC) in June 2024. The company appeared to suggest that AI would be the driving force behind the iPhone 16, especially with the introduction of "Apple Intelligence" aimed at enhancing Siri’s capabilities. However, they argue that Apple did not have a functional AI model ready for these features. The delay in rolling out these updates until 2026 exposed the unrealistic expectations Apple had set.
This lawsuit comes at a critical time for Apple, as its stock has lost nearly 25% of its value since December 2024. This sharp decline has erased almost $900 billion from the company’s market capitalization, placing it under intense pressure.
Source: Reuters