Apple reached a $250 million settlement agreement to resolve a class-action lawsuit accusing the company of misleading consumers about artificial intelligence capabilities. The suit is especially targeting the AI features promoted during the iPhone 16 launch.
Eligible iPhone owners could receive payments ranging from $25 to as much as $95 per device, according to settlement documents filed May 5 in federal court in California’s Northern District.
The lawsuit claimed Apple violated consumer protection laws by promoting advanced Siri features powered by Apple Intelligence that did not exist when the iPhone 16 launched in September 2024. Plaintiffs alleged the company saturated television, internet, and other media channels to cultivate expectations that transformative AI capabilities would be available immediately upon device release, however Apple delayed these features in March 2025 and subsequently pulled its promotional advertisements.
Apple showcased an upgraded Apple Intelligence-powered Siri at its Worldwide Developers Conference in June 2024, highlighting capabilities including notification summaries, Genmoji creation tools, and enhanced conversational abilities.
Mark these credentials: The settlement covers purchases of iPhone 16, iPhone 16e, iPhone 16 Plus, iPhone 16 Pro, iPhone 16 Pro Max, iPhone 15 Pro, and iPhone 15 Pro Max models made between June 10, 2024 and March 29, 2025. Consumers who purchased multiple qualifying devices may claim payments for each unit.
Apple denied any wrongdoing while agreeing to the settlement, stating the company resolved the matter to remain focused on delivering innovative products and services. According to the company:
“Apple has reached a settlement to resolve claims related to the availability of two additional features. We resolved this matter to stay focused on doing what we do best, delivering the most innovative products and services to our users,” the company said in a statement.
The settlement received preliminary approval and eligible users will receive email notifications within 45 days. Remember that this offer is only available for US users only. Claimants must provide proof of purchase, device serial numbers, phone numbers, and Apple Account information through a dedicated settlement website that will launch in coming weeks.
The $250 million fund covers both consumer payments and legal fees, with final payout amounts depending on total claim volume. A separate class-action lawsuit led by South Korea’s National Pension Service alleges Apple’s AI delays cost investors billions in stock market loss.
Fresh reports also claim that Apple may unveil a new AI-powered Siri, potentially integrated with Google Gemini, during WWDC 2026 in June.
