Apple Faces Suit Over AI Delays, Stock Drop

Apple is facing a proposed securities fraud class action lawsuit filed in San Francisco federal court by shareholders who allege the company misled investors about the timeline and readiness of advanced AI features for Siri and the iPhone 16. The suit claims Apple falsely promoted its 'Apple Intelligence' suite as a key selling point for the iPhone 16 despite lacking a working prototype and postponing major Siri upgrades to 2026. CEO Tim Cook, CFO Kevan Parekh, and former CFO Luca Maestri are named as defendants. Shareholders argue that modest AI progress unveiled at WWDC 2025 and delayed enhancements led to a 25% drop in Apple’s stock price since December 2024, erasing about $900 billion in market value. The lawsuit coincides with reports that Apple is exploring acquisitions in the AI sector, such as Perplexity AI, to bolster its capabilities. Apple has not commented on the pending litigation.