Apple is facing a new lawsuit as its artificial intelligence efforts come under scrutiny. A proposed securities fraud class action, filed by shareholders in federal court in San Francisco, accuses the company of misleading investors about the readiness of AI-powered upgrades to Siri.

Figure 1. Apple Faces $900B Market Value Loss.

The complaint claims Apple falsely implied that new Siri features—branded under its “Apple Intelligence” initiative—would be available on the iPhone 16 lineup and significantly boost demand. However, the company later postponed the Siri enhancements until 2026, a move the plaintiffs say led to disappointing iPhone sales and a sharp drop in share value.

AI Hype vs. Reality

The controversy stems from Apple’s WWDC 2024 announcement, where it unveiled ambitious AI features intended to make Siri more intelligent and intuitive, capable of understanding user context and interacting seamlessly across apps. Figure 1 shows Apple Faces $900B Market Value Loss.

Shareholders allege that Apple had no functioning prototype at the time and “could not reasonably believe” the AI features would be ready for the iPhone 16. The delay was made official in March 2025, when Apple confirmed the upgrades wouldn’t arrive until 2026 [1]. The company also restructured its leadership, removing its SVP of Machine Learning and reassigning the project to Vision Pro lead Mike Rockwell.

Muted WWDC 2025 Raises Concerns

At WWDC 2025, expectations for progress were unmet. The Siri upgrade received only a brief mention from Craig Federighi, Apple’s SVP of Software Engineering, who acknowledged the delay and said the features were still in development. Investors viewed the lack of updates as confirmation that Apple was struggling to keep pace in the competitive AI race.

Massive Market Value Loss

Apple’s share price has plummeted nearly 25% since peaking on December 26, 2024, erasing around $900 billion in market value. The lawsuit, led by shareholder Eric Tucker, seeks to recover what the plaintiffs describe as “hundreds of billions of dollars” in losses tied to Apple’s alleged misrepresentations.

Reference

1. https://interestingengineering.com/culture/siri-ai-delays-trigger-apple-lawsuit

Cite this article:

Keerthana S (2025), Apple Faces Lawsuit Over Siri AI Issues Following $900B Market Value Loss and Plummeting iPhone 16 Sales, AnaTechMaz, pp.103