California: Apple has agreed to pay $250 million to settle a class action lawsuit accusing the company of misleading customers about artificial intelligence features on its latest iPhones.
The settlement, filed in a federal court in California, resolves claims from a consolidated lawsuit brought by US consumers who purchased the iPhone 15 and iPhone 16 between June 2024 and March 2025. The company did not admit any wrongdoing as part of the agreement.
Under the deal, eligible buyers are expected to receive compensation ranging from $25 to $95. The lawsuit centred on Apple’s promotion of its AI system, Apple Intelligence, including enhancements to its voice assistant Siri. Plaintiffs alleged that the company marketed features that were either unavailable at launch or significantly delayed.
In a statement, an Apple spokesperson said the case focused on the availability of two additional features within a broader rollout of Apple Intelligence capabilities. The company stated that it chose to settle the matter to remain focused on delivering innovative products and services.
However, lawyers representing consumers argued that Apple’s marketing campaign created unrealistic expectations. In a revised complaint, they claimed the company 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.
The lawsuit also alleged that Apple accelerated its AI messaging to keep pace with competitors such as OpenAI and Anthropic amid intensifying competition in the tech industry. Criticism has also been directed at Apple CEO Tim Cook, with some observers questioning the company’s pace of innovation in recent years.
According to court filings, the plaintiffs claimed that the iPhone 16 launched without key Apple Intelligence features, including an enhanced version of Siri that had been promoted as a major upgrade capable of transforming the assistant into a more advanced, personalised AI tool.
The settlement brings an end to the high-profile legal challenge as Apple continues expanding its AI offerings across devices.
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