Apple agrees to $250M settlement over AI claims for iPhone buyers
Apple agrees to $250M settlement over AI claims for iPhone buyers
Apple will pay up to $95 to eligible US buyers as part of a $250 million settlement over AI features in Apple Intelligence, ending a notable class action.
Apple has reached a $250 million settlement to resolve a class-action lawsuit accusing the tech giant of misleading iPhone buyers about new AI features marketed as Apple Intelligence. The company did not admit any wrongdoing as part of the deal.
Under the terms, eligible U.S. customers who bought an iPhone 15 or iPhone 16 between June 2024 and March 2025 will receive between $25 and $95. The settlement, filed in a California federal court, covers claims that two additional AI features were oversold amid a broader rollout of Apple Intelligence, including improvements to Siri.
Lawyers for the plaintiffs argued that Apple marketed AI capabilities that did not exist at the time and that the company used aggressive advertising to chase rivals in the tech AI race, led by players like OpenAI and Anthropic. Apple said the settlement allows it to stay focused on delivering innovative products for users.
While the payout is sizable, the case highlights ongoing questions about how tech companies describe AI features. The distribution details and claim process will be announced by the court and class administrators, and not all buyers will receive funds.