Apple Accused of AI Exaggeration in Investor Fraud Lawsuit
Apple Inc. is facing a shareholder lawsuit in the United States for allegedly exaggerating its progress in artificial intelligence (AI), misleading investors and causing significant financial losses. The lawsuit, filed in federal court in San Francisco, California, claims that the tech giant misrepresented the readiness of its AI features during its Worldwide Developers Conference (WWDC) in June 2024.
According to the complaint, Apple promoted that its upcoming iPhone 16 would feature advanced AI capabilities, yet in reality, it allegedly had no functional prototype for those features at the time. Reuters reports that the lawsuit names Apple CEO Tim Cook along with both current and former Chief Financial Officers as defendants.
Shareholders argue that the “misleading promotion” led investors to suffer losses amounting to hundreds of billions of dollars. The situation reportedly became more apparent in March 2025 when Apple announced that certain upgrades to Siri had been delayed until 2026. Furthermore, the company's performance during the June WWDC fell short of analysts' expectations regarding AI advancements.
Since December 2024, Apple’s stock price has dropped by nearly a quarter, erasing approximately $900 billion in market value.
