Apple seeks dismissal of fraud lawsuit over Siri AI delays and Epic Games compliance

Apple seeks dismissal of fraud lawsuit over Siri AI, Epic injunction

Feb 26 (Reuters) - Apple (AAPL.O), opens new tab urged a federal judge to dismiss a proposed class action claiming it defrauded shareholders twice, by overstating the artificial intelligence capabilities of its Siri voice assistant and falsely representing its compliance with an injunction governing commissions on app sales. In a Wednesday filing in the San Jose, California, federal court, Apple said there was no proof it knew when discussing AI at a June 2024 conference that it would take longer than expected to incorporate two advanced AI features into Siri, potentially hurting iPhone 16 sales. The company delayed some Siri upgrades the following March, and Chief Executive Tim Cook said two months later that developing a "more personal" Siri was "taking a bit longer than we thought." Apple also said it provided no assurance that its procedures designed to comply with a 2021 injunction, in a case brought by Epic Games, to let app users pay developers directly rather than have the company charge the developers hefty commissions would be foolproof. "It is no secret that Apple faced challenges and weathered ups and downs in its stock price in 2025, like many major companies," Apple said. "But plaintiff takes a massive and unsupported leap by claiming that securities fraud caused the temporary price drops." The lawsuit covers Apple shareholders who suffered potentially hundreds of billions of dollars of losses in the Cupertino, California-based company's stock between May 3, 2024 and May 1, 2025, the day after a judge said Apple was Lawyers for shareholders led by South Korea's National Pension Service, the world's third largest pension fund with close to $1 trillion of assets, did not immediately respond to requests for comment. Apple's injunction required the company to provide app users with external links for purchases, so developers wouldn't owe 30% commissions for purchases in its App Store. The judge overseeing that case rebuked Apple for creating a new system that charged a 27% commission on some external sales. A federal appeals court partially reversed her sanctions in December. Reporting by Jonathan Stempel in New York; Editing by Franklin Paul Our Standards: The Thomson Reuters Trust Principles., opens new tab

Apple tries to dismiss proposed class action over AI fraud claims - 9to5Mac

The lawsuit accuses Apple of having misled investors about the timeline and readiness of its Apple Intelligence and Siri features, as well as in relation to the Epic Games case. Here are the details. As Reuters reported: "Apple urged a federal judge to dismiss a proposed class action claiming it defrauded shareholders twice, by overstating the artificial intelligence capabilities of its Siri voice assistant and falsely representing its compliance with an injunction governing commissions on app sales." In its filing, Apple reportedly argues that "there was no proof it knew when discussing AI at a June 2024 conference that it would take longer than expected to incorporate two advanced AI features into Siri, potentially hurting iPhone 16 sales". Interestingly, Apple's motion also addresses the Epic Games litigation. The second fraud claim centers on that case, specifically the stock decline that followed Judge Yvonne Gonzalez Rogers' finding that Apple had violated her original injunction requiring changes to the App Store's commission rules. The report notes that Apple's defense states that the company "provided no assurance that its procedures designed to comply with [the] 2021 injunction [...] would be foolproof." According to Reuters, the shareholder plaintiffs are led by South Korea's National Pension Service, the world's third-largest pension fund with nearly $1 trillion in assets. As part of Apple's defense, the company's legal team reportedly said that while its stock "faced challenges and weathered ups and downs" in 2025, it would be a "massive and unsupported leap" to claim that it committed securities fraud.

Apple Asks Judge to Toss Claims It Misled Investors on Siri AI Progress | PYMNTS.com

By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions. The plaintiff alleges that Apple overstated its progress in adding artificial intelligence features to its voice assistant Siri and that the company misrepresented its ability to comply with a 2021 injunction in a case brought by Epic Games, according to the report. Apple argued in its court filing that there is no proof that it knew it would take longer than expected to add AI features to Siri, and that it did not guarantee it could comply with the injunction in the Epic case, the report said. The Epic case involved the commissions Apple collected on purchases made in its App Store, per the report. "It is no secret that Apple faces challenges and weathered ups and downs in its stock price in 2025, like many major companies," the firm said, per the report. "But plaintiff takes a massive and unsupported leap by claiming that securities fraud caused the temporary price drops." In the Epic Games case, a judge ruled in April that Apple deliberately ignored her 2021 order to allow developers to direct consumers to other payment options outside the App Store. Apple challenged the ruling, but an appeals court rejected its argument in December. The appeals court also ruled that a district judge must consider allowing Apple to collect a commission on transactions made outside its App Store, though not the 27% commission it used to charge. Meanwhile, Apple's planned AI makeover for Siri has seen more than a year of delays, glitches and senior departures. It was reported Feb. 11 that the company plans to delay the launch of several new capabilities for Siri. Some features that the company expected to add in March as part of an iOS 26.4 update are now likely to be released in May as part of iOS 26.5 and in September as part of iOS 27. In another, separate case, it was reported in October that Apple asked a judge to dismiss a racketeering lawsuit brought by digital payments solution provider Fintiv.