Apple Pushes Back Against Fraud Claims Over Siri AI and App Store Fees
Apple Denies Allegations of Misleading Investors
Apple has formally asked a California court to dismiss fraud allegations tied to what plaintiffs call "billions in losses." The case, brought by South Korea's National Pension Service and other investors, centers on two main accusations against the Cupertino-based company.
The Siri AI Controversy
Investors claim Apple exaggerated progress on Siri's AI upgrades ahead of the iPhone 16 launch. Court documents reveal heated debates about whether Apple executives knew development timelines were slipping when making public statements.
Apple's response? The company maintains it couldn't predict technical hurdles that emerged after showcasing the technology in June 2024. While acknowledging some delays, Apple notes CEO Tim Cook publicly addressed the challenges of developing personalized AI features.
"This was cutting-edge work," an Apple spokesperson told reporters. "Like any innovation, we encountered unexpected complexities that required more time."
App Store Commission Dispute
The second allegation involves Apple's handling of App Store commissions following its legal battle with Epic Games. Plaintiffs argue Apple created loopholes around court-ordered payment alternatives by implementing a new 27% fee structure.
Apple counters that it never promised perfect compliance solutions. The company points to partial relief from penalties granted by appellate judges in late 2025 as evidence its approach had merit.
Legal experts watching the case say it could set important precedents:
- How companies communicate AI development timelines
- What constitutes misleading statements about regulatory compliance
- When stock price fluctuations cross into securities fraud territory
The Northern District of California will decide whether these claims warrant trial—a decision that could ripple through Silicon Valley boardrooms.
Key Points:
- Apple denies misleading investors about Siri AI capabilities and App Store rules
- The lawsuit alleges billions in losses due to delayed features and commission policies
- Court documents show Apple maintains its public statements were made in good faith
- Outcome could impact how tech giants disclose AI progress and regulatory compliance
