Apple to Pay $250M to iPhone Buyers Over AI Features Claims

Apple has agreed to a $250 million settlement to end a class-action lawsuit in the United States that accused the company of misleading iPhone buyers about its AI features tied to Apple Intelligence. The settlement covers people who bought an iPhone 15 or iPhone 16 in the US between June 2024 and March 2025. While Apple did not admit wrongdoing, the deal will resolve the consolidated suit filed last year. The case centered on how Apple marketed AI features, including enhancements to Siri, as part of the Apple Intelligence rollout. The company said the focus was on the availability of two additional features amid a broader lineup of AI-enabled offerings, and a spokeswoman emphasized that the settlement lets Apple stay focused on delivering innovative products and services to users.

Plaintiffs’ lawyers argued that Apple promoted AI capabilities that did not exist at the time, do not exist now, and may not exist for years, marketing them as breakthrough innovations. They contended the marketing was aimed at catching up in the competitive tech race driven by new players like OpenAI and Anthropic. Critics have previously suggested that outgoing chief executive Tim Cook faced scrutiny over perceived innovation gaps in Apple’s product lineup. The settlement provides a monetary remedy without an admission of liability, enabling Apple to move forward with its development roadmap.

The agreement is described as a way to bring closure for buyers who purchased devices during the specified period, under terms that grant payments ranging from $25 to $95 per eligible iPhone buyer. The case was filed in a California federal court, reflecting the ongoing scrutiny of tech advertising practices in the AI era. Apple maintains that its core mission remains delivering high-quality, innovative technology to users, even as it addresses these consumer concerns.

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