Apple Seeks Dismissal of Investor Fraud Suit Over Siri AI and Epic Games Dispute

Apple Inc. Is defending itself against a proposed class action lawsuit alleging it misled investors regarding the development of its artificial intelligence capabilities, specifically within Siri and its compliance with an injunction stemming from its legal battle with Epic Games. The company is urging a federal judge to dismiss the case, arguing that claims of fraud are unsupported.

Allegations of Misleading Investors

Shareholders, led by South Korea’s National Pension Service – the world’s third-largest pension fund with nearly $1 trillion in assets – claim Apple misrepresented the timeline and readiness of its Apple Intelligence and Siri features. The lawsuit also centers on concerns about Apple’s adherence to a 2021 injunction related to App Store commission rules.

Apple’s Defense: No Prior Knowledge of Delays

In a filing with the San Jose, California, federal court, Apple argued that there is no evidence suggesting executives were aware of potential delays in incorporating two advanced AI features into Siri when discussing progress at a June 2024 conference. The company contends that these delays, and their potential impact on iPhone 16 sales, were unforeseen at the time of the initial statements. Apple maintains it did not realize at the time that the features would seize longer than expected.

The Epic Games Injunction and Commission Rates

The lawsuit also addresses Apple’s handling of an injunction resulting from its dispute with Epic Games. The injunction required Apple to allow app developers to provide users with external links for purchases, bypassing Apple’s standard 30% commission. Apple implemented a system that charged a 27% commission on some external sales, leading Judge Yvonne Gonzalez Rogers to find Apple in violation of the original injunction. Although a federal appeals court partially reversed the sanctions in December, the issue remains a point of contention.

Apple’s Argument Against Securities Fraud

Apple asserts that while the company faced stock market fluctuations in 2025, attributing these drops directly to securities fraud is a “massive and unsupported leap.” The company’s legal team emphasized that Apple provided no guarantee that its procedures for complying with the 2021 injunction would be “foolproof.”

Timeline of Events

• May 3, 2024 – May 1, 2025: Period during which shareholders claim to have suffered losses in Apple stock.
• June 2024: Apple discusses AI progress, including Siri upgrades, at a conference.
• March 2025: Some Siri upgrades are delayed.
• May 2025: Tim Cook acknowledges that developing a “more personal” Siri is “taking a bit longer than we thought.”
• December 2025: A federal appeals court partially reversed sanctions against Apple related to the Epic Games injunction.
• February 26, 2026: Apple files a motion to dismiss the shareholder class action lawsuit.

The case is ongoing, and the judge’s decision on Apple’s motion to dismiss will determine the future course of the litigation.