Pomerantz Law Firm Announces the Filing of a Class Action Against Apple Inc. and Certain Officers - AAPL

Core Viewpoint - A class action lawsuit has been filed against Apple Inc. and certain officers for alleged violations of federal securities laws during the Class Period from June 10, 2024, to June 9, 2025, related to misleading statements about the integration of advanced AI-based features into its products [1][7]. Company Overview - Apple Inc. is a multinational technology company primarily engaged in the design and manufacturing of smart devices and computers, as well as entertainment and artificial intelligence [3]. - The company's highest revenue product is the iPhone, with the latest model, iPhone 16, introduced in October 2024 [4]. AI Development and Competition - Apple has faced pressure from competitors like Google, Microsoft, and Amazon, who have launched advanced AI capabilities, prompting Apple to enhance its AI features, particularly for Siri [5]. - At the 2024 Worldwide Developer Conference (WWDC), Apple announced advanced AI-based Siri features, termed Apple Intelligence, as a key selling point for the iPhone 16 [6]. Allegations and Misleading Statements - The lawsuit alleges that Apple made materially false and misleading statements regarding the integration timeline of advanced AI-based Siri features, leading to overstated business and financial prospects [7]. - It is claimed that Apple lacked a functional prototype of the advertised features at the time of the 2024 WWDC and had no reasonable basis to believe it could deliver them within the iPhone 16 product cycle [6][15]. Stock Price Impact - Following the announcement of delays in Siri updates on March 7, 2025, Apple's stock price fell by $11.59 per share, or 4.85%, closing at $227.48 [9]. - Subsequent reports and announcements led to further declines in stock price, including a drop of $14.79 per share, or 7.28%, after a Wall Street Journal article criticized Apple's AI promises [12][13]. Internal Concerns and Future Outlook - Internal communications revealed that Apple executives expressed concerns about the functionality of the promised AI features, with some suggesting that the features might need to be rebuilt from scratch [16]. - The expected release of these features has been pushed to at least September 2025, with no guarantee they will ever be available [16].