Apple Sued by Shareholders For Overstating AI Capabilities That Wiped Out $900bn in Market Value

Apple Inc. is facing a proposed securities fraud class action lawsuit filed Friday in a U.S. federal court, with shareholders accusing the tech giant of misleading the public about its ability to integrate advanced artificial intelligence features into its Siri voice assistant.

The complaint, lodged in the Northern District of California, claims the company’s delays in delivering AI-driven functionality contributed to slumping iPhone sales and a dramatic fall in its stock price.

According to the suit, Apple and its top executives — including CEO Tim Cook, current Chief Financial Officer Kevan Parekh, and former CFO Luca Maestri — knowingly misled investors between June 2023 and June 2024 by overstating the company’s readiness to deploy AI technologies. The plaintiffs, led by shareholder Eric Tucker, allege that Apple concealed the fact it lacked a working prototype of an AI-powered Siri, even as it promoted artificial intelligence as a driving force for its upcoming iPhone 16 lineup.

At the center of the lawsuit is Apple’s June 2024 Worldwide Developers Conference (WWDC), where the company introduced its so-called “Apple Intelligence” suite. Marketed as a leap in Siri’s capability — including more contextual understanding and greater user-friendliness — the updates were portrayed as a central pillar of Apple’s next-generation software and hardware.

However, according to the complaint, Apple executives were aware that critical AI upgrades to Siri were not technically viable in time for deployment with the iPhone 16. On March 7, 2025, the company quietly delayed several of those Siri enhancements to 2026, setting off what the suit describes as a “slow drip” of bad news. Further disappointment came during Apple’s June 2025 WWDC, where its modest AI progress left analysts underwhelmed, triggering sharp market reactions.

Since reaching a record high on December 26, 2024, Apple’s shares have declined by nearly 25%, erasing an estimated $900 billion in shareholder value — one of the largest single-company drawdowns in recent Wall Street history.

The lawsuit, Tucker v. Apple Inc. et al, alleges that Apple’s misstatements violated federal securities laws by artificially inflating the company’s stock. It seeks damages on behalf of all shareholders who bought Apple stock during the one-year period ending June 9, 2025.

Neither Apple nor the named executives have responded to media inquiries about the lawsuit. The company has also not issued a formal statement to investors regarding the claims.

The case highlights the growing scrutiny facing tech companies over how they communicate their artificial intelligence strategies and readiness. With Big Tech firms increasingly positioning AI at the center of their growth narratives, investors are demanding not only innovation but transparency.

Apple’s cautious approach to AI — especially compared to peers like Microsoft and Google, who have rapidly deployed generative AI across their platforms — has been noted by analysts. While Apple has stressed user privacy and device-based AI as unique selling points, many believe that the company has fallen behind in the AI arms race.

Wedbush analyst Dan Ives, spoke last week, following Apple’s 2025 WWDC, on why investor patience may be wearing thin.

“This is not what developers or even consumers want to hear at this year’s WWDC. Apple focused on practical enhancements rather than bold new breakthroughs,” he said.

This lawsuit could test the extent to which Apple’s forward-looking AI claims will be judged as part of routine product development or as misleading conduct that materially harmed investors. If allowed to proceed, the case could unearth internal communications and timelines that provide a clearer view into how Apple developed and communicated its Siri AI roadmap.