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Investors Sue Apple For Allegedly Misleading On AI Progress

Image by Laurenz Heymann, from Unsplash

Investors Sue Apple For Allegedly Misleading On AI Progress

Reading time: 2 min

Last Updated: Jun 21, 2025

Written by Kiara Fabbri Multimedia Journalist
Fact-Checked by Sarah Frazier Content Manager

Apple faces a class action lawsuit from shareholders claiming that the company made false statements about its AI development, which resulted in significant financial losses.

In a rush? Here are the quick facts:

Shareholders claim Apple misled them about Siri’s AI upgrade timeline.
Promised AI features were reportedly not ready for iPhone 16 launch.
Apple stock dropped 25%, losing $900 billion in value.

Reuters reported that a San Francisco federal court received the lawsuit on Friday which accuses Apple of deceiving investors about the development speed of Siri AI voice assistant.

The investors claim Apple created false expectations about Siri’s new AI capabilities, and “lacked a functional prototype” of the new AI-based Siri and “could not reasonably believe the features would ever be ready” for the next iPhone, as reported by Reuters.

The lead plaintiff, investor Eric Tucker, said to Reuters that the company’s messaging during its June 2024 Worldwide Developers Conference gave the impression that AI would be a key selling point of the iPhone 16, especially with the launch of “Apple Intelligence,” a suite of tools promising a smarter, more user-friendly Siri.

Reuters reports that according to the lawsuit, Apple quietly delayed some of the planned Siri updates until 2026. The first major sign of trouble came on March 7, when news broke of the delay. Then, at the June 2025 developers conference, Apple’s modest AI announcements reportedly disappointed analysts, further fueling doubts.

As a result, Apple shares have plummeted nearly 25% since reaching an all-time high on December 26, 2024, erasing roughly $900 billion in market value, as observed by Reuters. CEO Tim Cook, CFO Kevan Parekh, and former CFO Luca Maestri are named as defendants.

Reuers says that Apple has not yet responded publicly to the claims.

Kiara Fabbri

Written by: Kiara Fabbri

Hi, I’m Kiara Fabbri a Tech News Writer at WatchEverywhere. I'm a multimedia journalist with a keen interest in innovative and immersive news storytelling. Fluent in three languages—Italian, English, and Spanish—I'm deeply engaged in all facets of news reporting. I am currently undertaking a Ph.D. exploring VR applications in journalism. Following my studies in psychology (BSc) and political psychology (MSc), I embarked on a three-year journey across South America. During this time, I undertook a 4000 km solo bicycle trip from Chile to Brazil. There, I camped, cooked on the road, and volunteered in various facilities. It was during these travels that I discovered my passion for journalism. Subsequently, I pursued a Master's program in journalism innovation and enterprise. My career in journalism has seen me produce VR immersive experiences covering a range of topics. These include documenting an Anti Militaristic raid of a NATO Base, life in the Brazilian Favelas, the recent violent protest clashes in Buenos Aires and finally social projects run by Skaters in the Argentinian ghettos. In addition to my journalistic endeavours, I also practice parkour, a discipline I have cultivated over several years now. I love to make the most of this skill in my journalistic style; for example, it has enabled me to capture dynamic footage from heights during the recent violent clashes in Buenos Aires. There, I scaled heights and employed a long stick on my camera to create aerial 360° views. Through my dedication to pushing the boundaries of journalism, I am committed to amplifying voices, sparking meaningful conversations, and driving positive change in the world.

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