Apple Seeks Dismissal of AI-Related Class Action Lawsuit
Apple has recently filed a motion to dismiss a class action lawsuit alleging that the company misled shareholders regarding delays in its artificial intelligence (AI) initiatives and its compliance with an injunction from the Epic Games lawsuit. The lawsuit, spearheaded by South Korea’s National Pension Service, claims that Apple’s actions resulted in significant stock market losses.
The plaintiffs accuse Apple of two main points:
1. Overpromising Siri Capabilities: The lawsuit alleges that Apple made commitments about Siri’s enhanced functionalities that it failed to deliver, leading to shareholder deception.
2. Inadequate Compliance with Epic Injunction: The plaintiffs argue that Apple did not properly adhere to the court-ordered injunction related to the Epic Games case, which mandated changes to Apple’s App Store policies.
In its defense, Apple contends that both allegations lack substantial evidence. The company asserts that there is no proof it was aware of potential AI feature delays at the time of their 2024 announcement. Additionally, Apple maintains that its efforts to comply with the Epic injunction were made in good faith and that any shortcomings were not intentional.
Apple’s filing states, It is no secret that Apple faced challenges and weathered ups and downs in its stock price in 2025, like many major companies. But plaintiff takes a massive and unsupported leap by claiming that securities fraud caused the temporary price drops.
The lawsuit focuses on stock price fluctuations between May 3, 2024, and May 1, 2025. During this period, Apple’s stock price increased from $183 to $213, and as of today, it stands at $272.
This case highlights the complexities of shareholder lawsuits, especially when they involve rapidly evolving technologies like AI. Companies often face challenges in meeting ambitious technological goals, and delays can impact stock performance. However, proving that such delays constitute securities fraud requires clear evidence of intentional deception or negligence.
In the broader context, this lawsuit is part of a series of legal challenges Apple has faced regarding its AI initiatives and compliance with court orders. The outcome of this case could set a precedent for how tech companies are held accountable for their public statements and compliance with legal mandates.
