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Apple has agreed to a $250 million settlement to resolve claims it misled consumers about artificial intelligence features tied to its latest iPhones, according to a federal court filing.
The proposed deal, filed in the U.S. District Court for the Northern District of California, would create a non-reversionary settlement fund to compensate customers who purchased certain iPhone models marketed with enhanced Siri capabilities that were not available at launch.
If approved, eligible users could receive a minimum of $25 per device, with payments potentially rising as high as $95 depending on the number of claims submitted.
The settlement covers an estimated 37 million devices sold in the U.S. between June 10, 2024, and March 29, 2025, including all iPhone 16 models as well as the iPhone 15 Pro and Pro Max.
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The lawsuit alleged Apple promoted a suite of “Apple Intelligence” features – including major upgrades to its Siri virtual assistant – that were not available when the devices went on sale. Plaintiffs said the company “showcased” advanced Siri capabilities in marketing campaigns even though the features “did not yet exist.”
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“Apple allegedly saturated the market with deceptive ads, inducing consumers to purchase iPhones based on the promise of certain Enhanced Siri features,” the filing states. “It further alleged that public reaction was swift and intense when consumers learned that the Enhanced Siri features would be released later than initially anticipated.”
Consumers argued they were effectively charged a premium for capabilities that were delayed, saying they would not have purchased the devices – or would have paid less – had they known the features would not be available at launch.
Court filings show plaintiffs estimated potential damages at more than $2 billion based on the alleged price premium tied to the promised features, though the settlement represents a fraction of that amount.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| AAPL | APPLE INC. | 287.46 | +3.28 | +1.16% |
Apple has denied wrongdoing but agreed to settle to avoid the uncertainty and expense of prolonged litigation.
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In a statement to FOX Business, Apple said it has rolled out “dozens” of AI features across its platforms.
“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. These include Visual Intelligence, Live Translation, Writing Tools, Genmoji, Clean Up and many more,” Apple said.
The case underscores growing legal risks for tech companies racing to roll out artificial intelligence tools, as firms compete to attract customers with increasingly sophisticated features. Apple has faced pressure from rivals including Google and Samsung, which have moved aggressively to integrate AI into their devices.
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To receive compensation, users will need to submit claims confirming they purchased an eligible device and expected to receive the enhanced Siri features that were not delivered at the time. The proposed settlement still requires court approval, with a hearing on preliminary approval scheduled for June.
