Apple is facing a shareholder lawsuit accusing the company of misleading investors about the progress of artificial intelligence integration in its Siri voice assistant, leading to a sharp drop in iPhone sales and a steep fall in its stock value.

Filed in a San Francisco federal court on Friday, the proposed securities fraud class action claims Apple downplayed the time it would take to incorporate advanced AI features, resulting in heavy investor losses over the past year.

The complaint, brought by shareholders led by Eric Tucker, names CEO Tim Cook, Chief Financial Officer Kevan Parekh, and former CFO Luca Maestri as defendants.

According to the filing, Apple gave the impression at its June 2024 Worldwide Developers Conference that AI would be a major feature of its upcoming iPhone 16, highlighting Apple Intelligence and improvements to Siri’s performance.

However, shareholders argue the company did not have a functional prototype of the AI-based Siri features at the time, nor a reasonable expectation that the tools would be ready in time for the iPhone 16.

They claim the reality began to surface on March 7, when Apple postponed some Siri upgrades to 2026. The situation worsened during the June 9, 2025 conference, where Apple’s presentation of its AI developments reportedly disappointed analysts.

Apple shares have fallen nearly 25 percent since their record high on December 26, 2024, wiping out around $900 billion in market value.

Apple has yet to respond to the lawsuit. The case is listed as Tucker v. Apple Inc et al, U.S. District Court, Northern District of California, No. 25-05197.