Apple Faces Shareholder Lawsuit Over Siri and App Store Compliance
Apple is currently defending itself against a proposed class action lawsuit alleging the company misled investors regarding the development of its AI-powered Siri assistant and its adherence to legal rulings stemming from the Epic Games dispute. The lawsuit, reported by Reuters on February 26, 2026, claims Apple overstated Siri’s capabilities and misrepresented its compliance with a 2021 injunction.
The Siri AI Delay and Investor Concerns
Apple initially previewed significant upgrades to Siri – personal context and onscreen awareness – at WWDC in June 2024, slated for release with iOS 18 and the iPhone 16. However, these features have faced repeated delays. CEO Tim Cook acknowledged in 2025 that developing a “more personal” Siri was “taking a bit longer than we thought.” This delay sparked accusations of false advertising and unfair competition, culminating in the March 2025 lawsuit.
Apple argues it never guaranteed the timely delivery of these AI features and that there’s no evidence executives knew about the extent of the delays when initially promoting them. The company maintains that stock price fluctuations in 2025 were typical for major companies and not directly caused by any alleged securities fraud.
The Ongoing Epic Games App Store Battle
The lawsuit also revisits the long-running legal battle with Epic Games, initiated in August 2020. The core of the dispute revolved around Apple’s App Store commission structure and restrictions on alternative in-app purchase methods. A judge initially ruled largely in Apple’s favor in September 2021, but found Apple’s anti-steering policies anticompetitive, prohibiting the company from blocking developers from informing users about alternative payment systems.
However, the conflict continued. In April 2024, a judge found Apple in “willful violation” of the injunction after introducing a new system that still charged developers a 27% fee on some external sales. While an appeals court partially reversed these sanctions in December 2025, it also mandated that a district judge consider allowing Apple to collect a commission on transactions outside the App Store, albeit a reduced one.
Broader Legal Challenges for Apple
This isn’t the only legal hurdle Apple faces. In October 2025, the company sought to dismiss a racketeering lawsuit brought by digital payments provider Fintiv. These multiple legal challenges highlight increasing scrutiny of Apple’s business practices and its dominance in the tech industry.
The Future of App Store Regulations and AI Transparency
These cases signal a potential shift in how tech companies are regulated, particularly concerning app store policies and the transparency of AI development. The Epic Games case, in particular, has opened the door to greater scrutiny of app store commissions and developer freedom. The ruling requiring Apple to allow developers to inform users of alternative payment options is a significant win for the developer community.
The lawsuit regarding Siri’s AI capabilities raises important questions about the responsibility of tech companies to accurately represent the progress of complex technologies. Investors are increasingly demanding transparency and accountability and companies may face legal repercussions for overpromising and underdelivering.
Pro Tip:
Maintain a close watch on court decisions related to Apple and other tech giants. These rulings can have a ripple effect on the entire industry, impacting everything from app development costs to consumer pricing.
FAQ
Q: What was the main issue in the Epic Games lawsuit?
A: The lawsuit centered on Apple’s App Store commission structure and restrictions on developers using alternative in-app purchase methods.
Q: What is Apple accused of in the current shareholder lawsuit?
A: Apple is accused of misleading investors about the progress of its Siri AI features and misrepresenting its compliance with the Epic Games injunction.
Q: What was the outcome of the initial ruling in the Epic Games case?
A: The judge ruled largely in Apple’s favor on most counts, but found Apple’s anti-steering policies anticompetitive.
Q: What is Apple’s defense against the shareholder lawsuit?
A: Apple argues there’s no proof executives knew about the delays with Siri’s AI features and that it never guaranteed full compliance with the Epic Games injunction.
Did you know? The Epic Games v. Apple case began in August 2020 and has involved multiple court rulings and appeals.
Stay informed about the latest developments in tech law and regulation. Explore our other articles on app store policies and artificial intelligence for more in-depth analysis.
