What happened
Apple filed a motion to dismiss a shareholder fraud lawsuit, alleging overstatements of Siri's Apple Intelligence capabilities and App Store compliance misrepresentation. The suit claims Apple overstated Siri features like 'personal context' and 'onscreen awareness,' previewed at WWDC 2024 for iOS 18 and iPhone 16, with CEO Tim Cook acknowledging 2025 delays. It also cites misrepresentation of App Store compliance with an Epic Games injunction, specifically a 27% fee on external sales. Apple argues executives lacked prior knowledge of delays and fraud claims are unsubstantiated.
Why it matters
Shareholder lawsuits quantify financial risk for platform operators from product delivery timelines and regulatory adherence. This suit, covering losses between May 2024 and May 2025, exposes companies to significant penalties. Product teams face legal weight from public feature commitments, requiring clear development roadmap communication. Legal and compliance teams face heightened scrutiny over injunction non-compliance, as demonstrated by the 27% fee mechanism. This follows a December appeals court decision partially reversing sanctions against Apple regarding the Epic Games injunction.
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