Key Takeaways
1. Shareholders believe the company misled them about the impact of Apple Intelligence on iPhone 16 sales, feeling features were intentionally delayed.
2. The lawsuit claims potential losses could reach hundreds of billions of dollars by June 9, 2025, due to these delays.
3. Expected improvements to Siri were not delivered, with upgrades postponed to 2026, despite earlier assurances at WWDC.
4. Apple’s share value has dropped nearly 25% since December 26, 2024, resulting in a market value loss of about $900 billion.
5. The lawsuit names CEO Tim Cook, CFO Kevan Parekh, and former CFO Luca Maestri for misleading investors and committing securities fraud.
Shareholders have expressed their belief that the company misled them into thinking that Apple Intelligence would have a greater impact on the sales of the iPhone 16. This led Eric Tucker’s group to feel that the company intentionally minimized the time needed to roll out the promised features.
Potential Financial Impact
The lawsuit claims that this delay could result in potential losses amounting to hundreds of billions of dollars for the fiscal year ending June 9, 2025. In 2024, the tech giant made several announcements about changes, aiming to offer a more personalized experience to its users.
Changes and Delays
While some of these changes did happen, the anticipated improvements to the integrated virtual assistant Siri did not materialize as expected. During WWDC, the company had assured a more personalized and improved Siri, but it was noticeably absent. The launch was postponed in March, with upgrades now set for 2026. At WWDC 2025, the company simply stated they were still in development.
Share Value Decline
As reported by Reuters, shares have dropped nearly a quarter in value since December 26, 2024, which translates to a market value loss of about $900 billion. Some of this decline is attributed to tariff changes introduced during the Trump administration.
The lawsuit names CEO Tim Cook, CFO Kevan Parekh, and former CFO Luca Maestri as defendants, accusing them of misleading investors and committing securities fraud.
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