Apple has agreed to a $250 million settlement to resolve claims that it misled consumers about artificial intelligence features tied to its latest iPhones, according to a federal court filing in the U.S. District Court for the Northern District of California [1]. The proposed settlement would establish a non-reversionary fund to compensate customers who purchased certain iPhone models marketed with enhanced Siri capabilities that were not available at launch [1].
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 [1]. Plaintiffs in the lawsuit alleged that 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. The company was accused of saturating the market with deceptive ads, leading consumers to purchase iPhones based on the promise of certain enhanced Siri features that did not yet exist [1].
Court filings indicate that plaintiffs estimated potential damages at more than $2 billion based on the alleged price premium tied to the promised features, though the settlement amount is a fraction of that figure [1]. Apple has denied any wrongdoing but agreed to settle to avoid the uncertainty and expense of prolonged litigation [1]. In a statement to FOX Business, Apple emphasized that it has since rolled out 'dozens' of AI features across its platforms, including Visual Intelligence, Live Translation, Writing Tools, Genmoji, and Clean Up, all built with privacy protections [1].
Apple Inc. (AAPL) shares last traded at $287.46, up $3.28 (+1.16%) [1]. The case highlights the growing legal risks for tech companies as they race to introduce advanced artificial intelligence tools, with Apple facing competitive pressure from rivals such as Google and Samsung [1].
CONCLUSION
Apple's $250 million settlement addresses consumer claims over delayed AI features in recent iPhone models, with eligible users potentially receiving up to $95 per device. While Apple denies wrongdoing, the case underscores the legal and competitive challenges tech firms face as they rapidly deploy new AI technologies.