Shareholders Hit Apple (AAPL) with Class Action Lawsuit Over AI Delays

Apple’s (AAPL) artificial intelligence (AI) headaches just got a lot worse.

The consumer electronics giant has been sued by its shareholders in a proposed class action case. The lawsuit accuses Apple of downplaying the time needed to integrate advanced AI features into its Siri digital assistant, hurting iPhone sales and the company’s stock price.

Essentially Apple is being sued for not moving fast enough to upgrade Siri with new AI features that will help boost iPhone sales and its stock. The lawsuit has been filed in a San Francisco-based federal court and seeks unspecified damages for shareholders who have lost money in the year ending June 9.

AI Problems

The complaints leveled by shareholders in the class action lawsuit have been echoed by Wall Street analysts who have accused Apple’s senior management of dragging their feet on AI upgrades for the company’s various devices, notably the iPhone that accounts for half of Apple’s annual revenue.

An upgraded Siri with AI capabilities has long been viewed as a potential gamechanger for the iPhone and something that analysts and investors continue to push for from Apple. However, the company recently pushed back the timing for an AI-enabled Siri to mid-2026 as its engineers work on the technology.

Apple’s stock has continued to sink following the company’s latest developer conference held earlier in June that was light on substantive AI upgrades, further disappointing shareholders and the analyst community. AAPL stock is down 20% this year.

Is AAPL Stock a Buy?

The stock of Apple has a consensus Moderate Buy rating among 29 Wall Street analysts. That rating is based on 16 Buy, nine Hold, and four Sell recommendations assigned in the last three months. The average AAPL price target of $226.94 implies 15.44% upside from current levels.

Read more analyst ratings on AAPL stock