Shareholders File Lawsuit Against Apple for Allegedly Inflated AI Advancements

Apple is facing a proposed securities fraud class action lawsuit from shareholders who claim the company misrepresented its capabilities in integrating advanced AI into its Siri voice assistant. This alleged downplaying negatively affected iPhone sales and stock prices, resulting in significant financial losses, potentially in the hundreds of billions. The lawsuit, filed in San Francisco federal court, targets CEO Tim Cook, CFO Kevan Parekh, and former CFO Luca Maestri. Shareholders, led by Eric Tucker, argue that at the June 2024 Worldwide Developers Conference, Apple implied AI would be crucial for the upcoming iPhone 16, yet the company lacked a viable AI-based Siri prototype. Concerns heightened after Apple announced delays in AI upgrades to 2026 and disappointing assessments during the recent conference on June 9. Since reaching a record high in December 2024, Apple shares have dropped nearly 25%, erasing around $900 billion in market value.

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