Latest news with #securitiesFraud
Phone Arena
9 hours ago
- Business
- Phone Arena
Apple sued again over broken AI promises, and this time by its own shareholders
Apple is now facing a new legal challenge, this time from its own shareholders. A proposed securities fraud class action was filed in federal court on June 20, accusing the company of misleading investors about the timeline and capabilities of its artificial intelligence features, particularly those tied to Siri and the iPhone 16. The lawsuit, filed in San Francisco's Northern District of California, claims Apple downplayed how long it would take to deliver the AI upgrades it introduced as part of Apple Intelligence. The plaintiffs argue that these delays contributed to a decline in iPhone sales and a significant drop in the company's stock value. The case, Tucker v. Apple Inc, names CEO Tim Cook, CFO Kevan Parekh, and former CFO Luca Maestri as defendants. According to the complaint, investors were led to believe that Apple Intelligence would be a key selling point for the iPhone 16 lineup, offering smarter and more capable Siri experiences. But shareholders claim Apple did not actually have a working version of those features when it made those announcements during the June 2024 Worldwide Developers Conference. The situation became more complicated earlier this year when Apple reportedly postponed some of the new Siri capabilities to 2026. That initial delay came in March, and was followed by a WWDC 2025 presentation that left many analysts underwhelmed with the company's AI progress. In the months since, Apple shares have fallen nearly 25 percent from their all-time high in late December 2024, wiping out about $900 billion in market value. Apple's broken AI promise prompted this new round of litigation. | Image credit — Apple via Wayback Machine From a consumer standpoint, I think it was only a matter of time before legal action followed. Many users were expecting next-gen Siri features out of the box. Now that the lawsuit is official, Apple may need to move quickly to restore trust. Ideally, that means delivering more AI upgrades sooner, though it's likely the company will now be more cautious about overpromising in the future. Secure your connection now at a bargain price! We may earn a commission if you make a purchase Check Out The Offer
CNA
2 days ago
- Business
- CNA
Apple sued by shareholders for allegedly overstating AI progress
Apple was sued on Friday by shareholders in a proposed securities fraud class action that accused it of downplaying how long it needed to integrate advanced artificial intelligence into its Siri voice assistant, hurting iPhone sales and its stock price. The complaint covers shareholders who suffered potentially hundreds of billions of dollars of losses in the year ending June 9, when Apple introduced several features and aesthetic improvements for its products but kept AI changes modest. Apple did not immediately respond to requests for comment. CEO Tim Cook, Chief Financial Officer Kevan Parekh and former CFO Luca Maestri are also defendants in the lawsuit filed in San Francisco federal court. Shareholders led by Eric Tucker said that at its June 2024 Worldwide Developers Conference, Apple led them to believe AI would be a key driver of iPhone 16 devices, when it launched Apple Intelligence to make Siri more powerful and user-friendly. But they said the Cupertino, California-based company lacked a functional prototype of AI-based Siri features, and could not reasonably believe the features would ever be ready for iPhone 16s. Shareholders said the truth began to emerge on March 7 when Apple delayed some Siri upgrades to 2026, and continued through this year's Worldwide Developers Conference on June 9 when Apple's assessment of its AI progress disappointed analysts. Apple shares have lost nearly one-fourth of their value since their December 26, 2024 record high, wiping out approximately $900 billion of market value. The case is Tucker v. Apple Inc et al, U.S. District Court, Northern District of California, No. 25-05197.
The Guardian
5 days ago
- Business
- The Guardian
New Orleans archdiocese bond investors accuse church of ‘securities fraud'
The Roman Catholic archdiocese of New Orleans is planning to default on paying a nearly $1m interest payment on more than $41m in bonds it sold in 2017, leading lawyers for the people who purchased the church's debt to allege in open court that it had engaged in 'the definition of securities fraud'. An attorney for the archdiocese countered that the allegation is 'an extreme stretch'. But whatever the case, the dispute pitting the US's second-oldest Catholic diocese against the holders of revenue bonds refinancing debt that the New Orleans church took on to rebuild after Hurricane Katrina could complicate efforts to settle a federal financial reorganization that is otherwise largely centered on more than 600 clergy abuse claimants. Lawyers for investors who purchased the church's debts on the bond market made the securities fraud accusations in front of US bankruptcy judge Meredith Grabill on Friday. Bondholder attorney Colleen Murphy said various archdiocesan representatives – including archbishop Gregory Aymond, vicar of finance Patrick Carr and church-hired bankruptcy lawyer Lisa Futrell – had said in the press and on calls with bondholders that the archdiocese would 'pay 100%' of its debts despite filing for chapter 11 protections. Murphy added that the archdiocese reassured bondholders by citing its obligation to comply with canon, or church, law to 'pay all your debts in full when they come due'. Yet on 6 June, on the official website for municipal securities data and documents, the archdiocese notified its revenue bond holders – who are investors in public securities – that the organization would not make a $930,206.25 interest payment due on 1 July. The notice mentioned a proposed bankruptcy settlement – which had not gained approval at the time of Friday's hearing – and how the archdiocese did 'not intend to seek the reinstatement of the bonds' in light of the settlement proposal. In its own notice on the same municipal securities website on Tuesday, Murphy's office told bondholders that the church would try to lower lower the value of their investment through the settlement – though how much 'remains unclear'. Murphy's colleague, Christopher Marks, on Friday told Grabill that he was worried the archdiocese might try to argue it is insolvent. Marks said that would create several issues. He didn't elaborate, but – because the archdiocese is technically a nonprofit– Grabill has previously said she can't force the group into liquidation, which would involve shutting the organization down and selling off its assets to pay back its debts. As part of required financial disclosures, the archdiocese in November estimated its liquidation value would be $315m, with $158m of that already obligated – leaving only $122m available for abuse survivors and others owed by the church. The notice from Murphy's office said her side had 'retained a law firm to advise it on potential causes of action related to possible violations of securities laws against the archdiocese and other parties'. Murphy was more blunt when speaking with Grabill, saying: 'I'm here to tell you that's the definition of securities fraud.' She suggested in other contexts it was OK to attribute a reneged promise to 'wishful thinking' that collapsed under the weight of reality – 'but you say that to the bond market, [and] it's securities fraud'. Marks echoed her in his own remarks to Grabill, saying: 'Statements … have been made throughout this case … directly to bond holders, to the public, to the market … that their claims will be paid in full. 'We're talking about securities fraud.' Murphy said many of the bond buyers who stand to be affected by the church's decision to halt the 1 July interest payment are Louisiana citizens. 'They're almost definitely … parishioners,' Murphy said. 'These are the people they've cut off.' In court, a bankruptcy attorney representing the archdiocese, Mark Mintz, accused Marks and Murphy of 'kind of randomly … spouting out accusations'. He called their claims 'an extreme stretch that really has no basis'. A statement from the archdiocese added in part that the church 'strongly disagrees with the inflammatory statements made by the [bondholders'] attorneys in court'. Sign up to Headlines US Get the most important US headlines and highlights emailed direct to you every morning after newsletter promotion Noel Boeke, a bankruptcy attorney based in Tampa, Florida, who is not involved in the New Orleans case, said the dispute over the bond debt may be little more than 'posturing' as the church and its creditors try to confirm a settlement to end a contentious bankruptcy that started in May 2020. 'It would not be unusual for an entity in bankruptcy to have difficulty paying its bond obligations,' Boeke said. 'These kinds of pre-confirmation skirmishes are everyday meat and potatoes stuff in bankruptcy court.' He said the biggest hurdle for the archdiocese is to get a final agreement with abuse survivors, which, if the currently proposed plan is approved by two-thirds of the claimants, would pay them $180m. The outstanding bond debt – which stood at $37.9m when the archdiocese filed for bankruptcy protection – is smaller by comparison, and Boeke said he would be surprised if that held up a final settlement deal. Another potential stumbling block: a November 2020 agreement for the church to continue paying interest to bondholders despite the bankruptcy's being unresolved does not allow the church to sell more than $20m in real estate assets – a provision meant to ensure there was enough collateral in case the archdiocese defaulted on the debt. The proposed bankruptcy settlement calls for selling a collection of apartment complexes that had previously received an offer of about $150m from a prospective buyer. The offer was not accepted at the time. New Orleans's archdiocese filed for bankruptcy protection in an attempt to limit its financial exposure in connection with the worldwide Catholic church's decades-old clergy molestation scandal. But the church doesn't only owe payments to abuse survivors once its financial reorganization is complete – it also owes other creditors like the bondholders. At the time of the church's bankruptcy filing, Louisiana – which includes New Orleans – generally prohibited molestation survivors from pursuing civil damages for long-ago abuse. Yet the state removed that prohibition with a law which took effect in August 2021 and was upheld as constitutional by Louisiana's supreme court in June 2024. Meanwhile, in a sworn statement filed in criminal court in April 2024, Louisiana state police revealed that they were investigating whether the New Orleans archdiocese ran a child sex trafficking ring responsible for the 'widespread … abuse of minors dating back decades' that was hidden from authorities for many years. A bloc of attorneys representing hundreds of clergy abuse survivors have expressed opposition to the pending settlement agreement, saying their clients deserve in the neighborhood of $300m. The settlement proposal is expected to be discussed at a hearing in Grabill's courtroom scheduled for 26 June.
CBS News
08-06-2025
- Business
- CBS News
State sues Colorado 'house flipper' for lying to investors, losing their money
A Colorado man was recently indicted for fraudulently raising $4.8 million from at least 80 investors to support his home "flipping" business. Mack Jamie Sprouse, 57, turned himself in last week to sheriff's deputies after the Colorado Division of Securities investigated his fundraising and presented its accusations to a Jefferson County grand jury. In a press release, the Division stated Sprouse issued promissory notes to investors with a promise to repay the principal of the note and high-interest payments. Sprouse, however, was not registered to offer or sell securities in Colorado. Additionally, the investments were not secured and Sprouse lacked sufficient funds to repay investors. Sprouse faces 11 counts of securities fraud. Sprouse owns Urban Veneer Holdings LLC based in Lakewood. The business specializes in "house flipping," or quickly buying and re-selling homes after extensively upgrading and remodeling them. "Sprouse made untrue statements of material fact and failed to disclose material facts to investors and engaged in business practices that operated as fraud and deceit upon investors," as stated in the Division's press release. "Sprouse allegedly misrepresented how he would use investor funds and his use and reliance on other sources of funding for Urban Veneer." A search of online public records shows Urban Veneer Holdings formed and registered with the state in 2020. Six liens have been filed against the business and/owner Sprouse since 2019 in Colorado. Plus, four civil suits have been filed in Jefferson County by creditors seeking compensation from Sprouse and/or his Urban Veneer Holdings in the last two years. One of those suits claims more than $447,000 is owed to the creditor. Sprouse paid a $50,000 personal recognizance bond Tuesday and was released from jail the same day he was arrested. The Colorado Attorney General's Criminal Justice/Financial Fraud Unit is prosecuting the case. A hearing is scheduled for June 8. In an unrelated matter, public records also indicate Sprouse is the father of Jordan Sprouse. The 18-year-old was killed in 2014 by a DUI driver weeks before his graduation from Lakewood High School. That driver was trying to scare his wife by speeding and running red lights on Kipling Avenue when the couple's car struck Jordan Sprouse's. Alton Kirkland is still serving a 35-year sentence in the Colorado Department of Corrections for the incident.
Yahoo
07-06-2025
- Business
- Yahoo
Viatris (VTRS) Faces Securities Fraud Class Action Over FDA Inspection Fallout
On May 31, 2025, Viatris Inc. (NASDAQ:VTRS) became the subject of a securities fraud class action lawsuit filed in the U.S. District Court for the Western District of Pennsylvania. The suit alleges that between August 8, 2024, and February 26, 2025, the company and certain executives made materially false or misleading statements regarding the operational status of its Indore, India manufacturing facility. Ralf Kleemann/ The complaint centers on Viatris' public assurances that its facilities were in "good operating condition" and committed to "the highest quality manufacturing standards." However, following a failed inspection, the U.S. Food and Drug Administration issued a Warning Letter and Import Alert in December 2024 that affected 11 products, including the cancer drug Lenalidomide. On February 27, 2025, Viatris (NASDAQ:VTRS) disclosed that the inspection issues would negatively impact 2025 revenue by roughly $500 million and earnings from operations by about $385 million. This revelation led to a 15% drop in Viatris' stock price, from $11.24 to $9.53 per share. Investors who purchased Viatris securities during the specified period have until June 3, 2025, to seek appointment as lead plaintiff in the lawsuit. While we acknowledge the potential of VTRS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
