Stock Slide Sparks Legal Firestorm
-
March 10: Apple’s stock plunged 4.85%, losing $11.59 to close at $227.48 per share.
-
Mid-March: A Morgan Stanley downgrade sliced Apple’s target price from $275 to $252, citing AI setbacks. Shares dropped another 5.05% to $209.68.
-
April: Amid mounting criticism, Apple’s stock dropped 7.28%, or $14.79, to $188.13.
-
June 9: With no AI updates announced at WWDC 2025, shares dipped again by $2.47, closing at $201.45.
The lawsuit alleges these drops were tied directly to Apple’s failure to disclose the risks of not delivering the promised AI features.
Inside Apple: “Ugly and Embarrassing” Delays
Tucker cites insider revelations that paint a troubling picture. During an all-hands meeting in the wake of the delays, Robby Walker, Apple’s Siri lead, reportedly admitted the company had prematurely promoted the technology, calling the situation “ugly and embarrassing.” Other senior leaders, including Software VP Craig Federighi, allegedly shared deep concerns over the tech’s functionality.
Some AI division employees feared the Siri project might be scrapped or rebuilt from scratch, raising doubts about whether the features would ever see the light of day.
“There is no guarantee that the advanced AI-based Siri features Apple promised will ever be available,” the complaint warns.
