Apple Seeks Dismissal of Fraud Allegations Over Siri and AI Developments
Apple Inc. has formally requested the dismissal of a class-action lawsuit alleging that the company misled investors regarding the capabilities of its Siri voice assistant and its broader artificial intelligence (AI) initiatives. The lawsuit also contends that Apple misrepresented its adherence to a court order related to App Store commission practices, leading to financial losses for shareholders.
Background of the Lawsuit
The legal action encompasses shareholders who held Apple stock between May 3, 2024, and May 1, 2025. Plaintiffs argue that Apple overstated the advancements in Siri’s AI features and misrepresented its compliance with a court injunction stemming from the Epic Games litigation. They claim these misstatements resulted in significant stock value declines during the specified period.
Apple’s Defense
In its defense, Apple asserts that there is no evidence to suggest the company knowingly provided false information to investors about its AI developments. The company acknowledges that certain advanced AI features for Siri experienced delays but maintains that these setbacks were unforeseen at the time of their initial announcements.
Apple also addresses the Epic Games injunction, which mandated that the company allow developers to include external payment links to circumvent the standard 30% commission. The company faced criticism for subsequently introducing a 27% commission on some external sales. In its court filing, Apple stated:
> 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.
Furthermore, Apple emphasized that it did not guarantee that its compliance procedures under the 2021 injunction would be flawless.
Implications for Shareholders
The shareholder group leading the lawsuit is spearheaded by South Korea’s National Pension Service, one of the world’s largest pension funds. The outcome of this case could have significant implications for investor confidence and Apple’s stock performance. A ruling in favor of the plaintiffs might lead to substantial financial penalties and necessitate changes in Apple’s disclosure practices.
Broader Context
This lawsuit is part of a series of legal challenges Apple has faced concerning its AI technologies and business practices. In 2025, Apple agreed to a $95 million settlement in a class-action lawsuit alleging that Siri recorded users without their consent. The company denied any wrongdoing but chose to settle to avoid prolonged litigation.
Additionally, Apple has been involved in legal disputes over its App Store policies, including the high-profile case with Epic Games. These legal battles have prompted increased scrutiny of Apple’s business practices and have led to calls for greater transparency and accountability.
Looking Ahead
As the court considers Apple’s request to dismiss the current lawsuit, the tech industry and investors are closely monitoring the proceedings. The case underscores the challenges companies face in balancing innovation with transparency and the importance of clear communication with stakeholders.
