Apple aims to dismiss Siri AI fraud lawsuit and Epic injunction

• The proposed class action covers Apple shareholders from June 10, 2024, to January 16, 2025, with potential losses claimed in the hundreds of billions of dollars
• Apple delayed two advanced Siri AI features until March 2025, three months after the conference where capabilities were discussed, with CEO Tim Cook acknowledging development took longer than expected
• Separately, Apple argues it provided no guarantee its compliance procedures for the Epic Games injunction would be foolproof, after facing rebuke for charging a 27% commission on external sales instead of the original 30% App Store rate

Summary

Apple is seeking dismissal of a proposed class action lawsuit alleging securities fraud related to Siri AI capabilities and non-compliance with an Epic Games injunction. The lawsuit, filed in San Jose federal court, could involve potential losses reaching hundreds of billions of dollars.

Key Allegations:

Apple denies knowingly misrepresenting Siri's AI capabilities at a June 2024 conference. The company delayed two advanced AI features beyond initial expectations, potentially impacting iPhone 16 sales. Apple announced in March that Siri upgrades would be postponed, with CEO Tim Cook later acknowledging development of a "more personal" Siri was "taking a bit longer than we thought."

Separately, plaintiffs claim Apple failed to properly comply with a 2021 Epic Games injunction requiring external payment links for app developers. While the injunction aimed to bypass Apple's 30% App Store commission, the company created a new system charging 27% on external sales. A judge rebuked Apple for this approach, though federal appeals court reversed sanctions in December.

Apple's Defense:

The company argues no evidence proves it deliberately concealed AI development delays and disputes claims that securities fraud caused temporary stock price drops in 2025. Apple maintains it provided no guarantees its compliance procedures would be "foolproof" and characterizes the plaintiff's fraud allegations as "a massive and unsupported leap."

Market Context:

Apple notes it experienced typical market volatility alongside other major companies in 2025. The case covers Apple shareholders during the relevant period, though lawyers for shareholders were unavailable for comment.