Apple Inc. (NASDAQ:AAPL) is being Sued for Securities Fraud
Apple Inc. (NASDAQ:AAPL) is being Sued for Securities Fraud
AAPL STOCK UPDATE: Apple Inc. (NASDAQ:AAPL) is being Sued for Securities Fraud – Contact BFA Law by August 19 Class Action Deadline
Why was Apple Sued for Securities Fraud?
Apple is a multinational technology company that engages primarily in the businesses of smart-devices and artificial intelligence (“AI”). Apple’s software includes a digital personal assistant called “Siri,” which was first introduced in October 2011. The complaint alleges that Apple misrepresented Siri’s advanced AI-based features as well as its ability to deliver them within the iPhone 16 product cycle.
In truth, as alleged, Apple lacked a functional prototype of Siri’s purported advanced AI-based features and misrepresented the time it would take to integrate such features into its devices.
The Stock Declines as the Truth is Revealed
On March 7, 2025, Apple announced it was indefinitely delaying several AI-based Siri features, citing development delays and pushing their release to sometime “in the coming year.” On this news, the price of Apple stock declined $11.59 per share, or almost 5%, from $239.07 per share on March 7, 2025, to $227.48 per share on March 10, 2025, the following trading day.
Then, on June 9, 2025, Apple hosted its Worldwide Developer Conference for 2025. Noticeably, Apple failed to announce any new updates regarding advanced Siri features. Analysts and media outlets described the WWDC as “underwhelming” and “disappointing,” with CNN stating that “it’s unlikely that any of the announcements made at Monday’s event will change the perception that Apple is behind its competitors in AI.” On this news, the price of Apple stock declined $2.47 per share, or over 1%, from $203.92 on June 6, 2025, to $201.45 per share on June 9, 2025, the following trading day.
I don’t think the features that Apple pushed out were demonstrably worse than what others are offering, nor did they lie about the product anymore than any other company. They were just the first to piss off enough users by pushing the reality of the tech in people’s faces to roll it back.
I mean, the lawsuits is right that they lied about the capability of the tech, but every company involved is doing that. I think the real issue from a shareholder perspective is that they put their money where their mouth is by pushing it out en mass and shoved the features in people’s faces, then walked back attempts to go any further when users said they hated it.