Apple Agrees to $250 Million Settlement Over Misleading AI Claims

Apple has offered a $250 million class-action settlement for roughly 37 million iPhone purchases between June 10 2024 and March 29 2025. Eligible models are all iPhone 16 variants and the iPhone 15 Pro/Pro Max. Claimants may receive $25 per device, up to $95 based on claim volume. Court approval is pending.

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In June 2024 Apple unveiled “Apple Intelligence,” touting an AI-enhanced Siri with real-time translation, notification summarization and deeper app integration. The iPhone 16 launched in September 2024 without the promised Siri upgrades, prompting a delayed rollout. Since then Apple added Visual Intelligence, Live Translation, Writing Tools, Genmoji and Clean Up, while the core Siri upgrade remains pending.

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Apple said the settlement resolves claims about two additional features and lets the company stay focused on delivering innovative products. Spokesperson Marni Goldberg said Apple has introduced dozens of features across many languages with privacy protections. Plaintiffs’ lawyers argue Apple promoted AI capabilities that did not exist at the time, do not exist now, and will not exist for two or more years, if ever, asserting consumers would have paid less or avoided the purchase had they known the Siri upgrades were unavailable. The filing also notes Apple’s use of Google’s Gemini and OpenAI’s ChatGPT for different AI components, highlighting a gap between rollout and the lawsuit’s allegations.

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Apple says 20 AI features are available, but the lawsuit points out the promised Siri upgrade was missing at launch. Sources also differ on the AI engine, citing Google’s Gemini in some reports and OpenAI’s ChatGPT in others.

TechCrunch

• “Apple has reached a settlement to resolve claims related to the availability of two additional features,” the company said. “We resolved this matter to stay focused on doing what we do best, delivering the most innovative products and services to our users.” — Apple spokesperson

Associated Press

• “Apple promoted AI capabilities that did not exist at the time, do not exist now, and will not exist for two or more years, if ever, all while marketing them as the breakthrough innovation,” lawyers wrote. — Plaintiffs’ counsel

BBC News

• “As a result, Apple charged consumers for Products they would not have purchased, or at least not at its premium price, had the advertising been honest,” the lawsuit alleged. — Plaintiffs’ filing

Apple to Pay Out $250 Million in iPhone AI Settlement. Here's Who's Eligible

• “Since the launch of Apple Intelligence, we have introduced dozens of features across many languages that are integrated across Apple's platforms, relevant to what users do every day, and built with privacy protections at every step.” — Marni Goldberg, Apple spokesperson

Fox Business (website)

A preliminary approval hearing is set for June 17 2026; final approval is required before any payouts. Apple plans to unveil the delayed Siri upgrade at its WWDC in June 2026. Eligible owners will receive claim notifications by email or mail and can submit proof of purchase through the settlement website.

Apple to pay out $250M to customers who bought these two popular iPhones