Apple has asked a federal judge to dismiss a shareholder lawsuit that accuses the company of overstating Siri AI features and mishandling its compliance with an Epic Games court injunction.
Quick Summary – TLDR:
- Apple wants a proposed class action lawsuit dismissed in federal court.
- Shareholders claim Apple misled investors about Siri AI upgrades and App Store compliance.
- The lawsuit focuses on stock losses between May 2024 and May 2025.
- Apple says there is no proof of securities fraud or intentional wrongdoing.
What Happened?
Apple Inc. has filed a motion in federal court in San Jose, California, seeking to dismiss a proposed class action lawsuit brought by shareholders. The lawsuit alleges the company defrauded investors by overstating the artificial intelligence capabilities of Siri and by misrepresenting its compliance with a court ordered injunction tied to its App Store policies.
The case is being led in part by South Korea’s National Pension Service, one of the world’s largest pension funds, which claims shareholders suffered significant losses during a period of stock price volatility.
The Allegations Around Siri AI
At the heart of the lawsuit are claims that Apple overpromised on advanced AI features for Siri during a June 2024 developer conference. Plaintiffs argue that Apple failed to disclose that certain features would take longer than expected to roll out, potentially affecting demand for the iPhone 16 lineup.
Some Siri upgrades were later delayed until March of the following year. Two months after that delay, Chief Executive Tim Cook acknowledged the timeline shift, stating that developing a “more personal” Siri was “taking a bit longer than we thought.“
Apple, however, argues there is no evidence it knew at the time of the 2024 announcements that the features would be postponed. In its court filing, the company said investors are making assumptions without proof that executives intentionally misled the market.
The company stated in its dismissal request:
The Epic Games Injunction Dispute
The second major claim centers on Apple’s compliance with a 2021 injunction stemming from its legal battle with Epic Games. The court had ordered Apple to allow app developers to include external links so users could make purchases outside the App Store payment system, avoiding the standard 30 percent commission.
Apple implemented changes that allowed external purchases but introduced a 27-percent commission on some transactions made outside the App Store. The federal judge overseeing the case criticized this approach and said it did not fully comply with the injunction.
A federal appeals court later partially reversed sanctions against Apple in December 2025, adding more complexity to the dispute.
In its latest filing, Apple said it never guaranteed its compliance measures would be foolproof and argued that the determination that its system was insufficient came only after implementation.
Stock Losses and Market Reaction
The lawsuit covers shareholders who held Apple stock between May 3, 2024 and May 1, 2025. Plaintiffs argue they suffered losses during that time frame, pointing to stock fluctuations as evidence of investor harm.
Apple counters that market volatility alone does not prove securities fraud. The company maintains that temporary stock price swings are common among major publicly traded firms and do not automatically signal misconduct.
Lawyers representing the plaintiffs have not publicly commented on Apple’s motion to dismiss.
SQ Magazine Takeaway
I see this case as a test of how far investors can stretch claims around delayed tech features and regulatory disputes. Product timelines shift all the time, especially with complex AI systems. If every delay turns into a fraud claim, tech companies will become overly cautious about announcing innovation.
At the same time, transparency matters. Investors deserve clear communication. But from what is publicly known so far, proving intentional deception could be difficult. This looks more like a debate over expectations than a clear case of fraud.
