Apple Sued By Shareholders For Allegedly Overstating AI Progress 14
Apple is facing a proposed class-action lawsuit from shareholders who allege the company misled investors about the readiness of its AI-powered Siri upgrades, contributing to a $900 billion drop in market value. Reuters reports: Shareholders led by Eric Tucker said that at its June 2024 Worldwide Developers Conference, Apple led them to believe AI would be a key driver of iPhone 16 devices, when it launched Apple Intelligence to make Siri more powerful and user-friendly. But they said the Cupertino, California-based company lacked a functional prototype of AI-based Siri features, and could not reasonably believe the features would ever be ready for iPhone 16s.
Shareholders said the truth began to emerge on March 7 when Apple delayed some Siri upgrades to 2026, and continued through this year's Worldwide Developers Conference on June 9 when Apple's assessment of its AI progress disappointed analysts. Apple shares have lost nearly one-fourth of their value since their December 26, 2024 record high, wiping out approximately $900 billion of market value.
Shareholders said the truth began to emerge on March 7 when Apple delayed some Siri upgrades to 2026, and continued through this year's Worldwide Developers Conference on June 9 when Apple's assessment of its AI progress disappointed analysts. Apple shares have lost nearly one-fourth of their value since their December 26, 2024 record high, wiping out approximately $900 billion of market value.
As a shareholder.... (Score:1)
I oppose this lawsuit.
What do these people want? Their money back?!?! Fuck that. Buy more shares while the stock is priced at a discount.
All this lawsuit will do is cost the shareholders money.
Seems dumb.
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"Stockholm syndrome is a psychological response where hostages or abuse victims develop positive feelings towards their captors or abusers. This phenomenon, though not an official diagnosis, involves victims bonding with their captors, sometimes to the point of sharing their goals and even resenting those trying to help them. It's often seen as a coping mechanism to deal with the trauma of captivity or abuse."
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Please.
These people just want to help themselves.
As the next poster states, the only ones getting any "help" are the lawyers, who make bank.
Re: As a shareholder.... (Score:2)
I bought an iPhone 16 believing the hype. I am extremely disappointed at this action from Apple I am strongly considering asking them to buy back my phone. In order to do that I am thinking of suing them. I am a nobody. I hope this suit gets traction because my suit will benefit. Even if they settle out of court for half the price will be a win in my eyes. I hope you do the same.
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You both got, and missed, the point.
Yes, it will cost shareholders money. But not the shareholders suing. Just all the rest of the retail shareholders that don't have enough clout to tell these "activist" investors to go pound it up their asses.
This happens every time a company has a problem reaching a stated goal, because these assholes don't believe they should share the risk, when sharing that risk is exactly what was signed up for when they invested in the company.
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I believe their complaint is that the company provided materially false information, which influenced their investment decisions. Lying is bad? And possibly damaging?
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I believe their complaint is that the company provided materially false information, which influenced their investment decisions. Lying is bad? And possibly damaging?
I wonder if Apple could use the argument that no expert in the field last year actually believed that Apple could reasonably implement their own AI models after being ignoring the area for so long. Perhaps there was a possibility that Apple could have partnered and paid money for already well-developed models that could be integrated at higher levels for specific phone use cases. However, even that seemed unlikely as no phone had impressive AI phone use cases, aside from maybe photo editing, but that was
Shareholder lawsuits (Score:2)
Happen almost daily for companies like Apple, no news here
Wrong headline (Score:3)
"Class Action ambulance chasers plan to sue Apple" When they get 1/3 of the settlement PLUS expenses, this is a very lucrative deal for class action specialists. As far as I'm concerned, that is legalized extortion. The purported justification that class members would not get "justice" without that kind of award does not hold water. Having been a member of multiple class actions, I got peanuts, and usually didn't think there was much of a case.
Re: Wrong headline (Score:2)
You are welcome to remove yourself from the class and sue on your own. Something tells me you will nor tho
Re: Wrong headline (Score:2)
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Well, in the case from late last year that I was a member of the class, I thought the claim was totally bogus. And that case did not go to trial, instead the company settled out of court. That's the best result for the scumbag lawyers, they get paid without having their bogus claims subjected to actual trial. I think this claim against Apple is similarly bogus, and has the same goal. Settle out of court, lawyers pocket their huge payout....
The one class where there was a legitimate concern, a meaningful