Facts

Apple Inc. manufactures, designs, produces and sells personal computers, cellular phones and other communication devices. In 2011, Apple launched iPhone 4S, which included a feature called "Siri" that allowed a user to speak into the phone and to ask the phone questions in order to receive responses. Apple launched a massive campaign to promote the new phone, as well as the new Siri feature on the phone. Several individuals who and purchased the iPhone 4S because of the new "Siri" feature filed a class action against Apple, alleging that Siri did not perform as advertised.

PLAINTIFF'S CONTENTIONS:
Plaintiffs alleged that Siri would give them incorrect answers after a very long wait time, failed to respond entirely, or was unable to answer the questions properly. Plaintiffs claimed that Apple failed to mention that Siri was still in the "beta" stage, or a work-in-progress. Thus, plaintiffs alleged that Apple misled them into purchasing their phones based on the advertisements about Siri. Specifically, they alleged violations of California's Consumer Legal Remedies Act, False Advertising Law, unfair competition law, the Magnusson-Moss Warranty Act, breach of express warranty, breach of implied warranty of merchantability, intentional misrepresentation, negligent misrepresentation, and unjust enrichment.

DEFENDANT'S CONTENTIONS:
Defendant argued that plaintiffs failed to sufficiently allege how its advertisements were misrepresentative or fraudulent and how Siri failed to perform as advertised. Apple argued that the plaintiffs based their claims on a selective reading the advertising and when placed in context, Apple adequately revealed Siri's beta status.

Result

The district court granted Apple's motion to dismiss, and granted plaintiffs leave to amended within 14 days of the order.