Apple to pay $250m to iPhone buyers over AI features lawsuit

Apple filed a settlement in a California federal court agreeing to pay a collective $250 million to iPhone buyers as part of resolving claims that the company misled consumers about new AI features marketed under 'Apple Intelligence' and about enhancements to Siri. The company did not admit wrongdoing. The payout is targeted at US buyers who purchased the iPhone 15 or iPhone 16 between June 2024 and March 2025, with individual payments ranging from $25 to $95. Apple stated the matter was about the availability of two additional features in the Apple Intelligence rollout and emphasized it is focused on delivering innovative products and services.

A revised complaint was filed for the consolidated class of iPhone buyers, contending that Apple's marketing around new AI features amounted to false advertising. Lawyers argued Apple promoted AI capabilities that did not exist at the time, do not exist now, and may not exist for two years or more, while marketing them as breakthrough innovations. The filing suggested Apple sought to accelerate its standing in a 'Big Tech' race led by companies such as OpenAI and Anthropic, and cited claims that the iPhone 16 was delivered without Apple Intelligence and that Enhanced Siri never materialized.

The settlement provides payments ranging from $25 to $95 to buyers of iPhone 15 and iPhone 16 purchased between June 2024 and March 2025.

Apple agreed to a $250 million settlement to end the lawsuit accusing the company of false advertising around Apple Intelligence and the Siri enhancement; Apple did not admit wrongdoing.

Lawyers filed a revised complaint for the consolidated class of iPhone buyers, arguing that Apple's marketing of AI features around Apple Intelligence misleads consumers by promoting capabilities that did not exist at the time, do not exist now, and may not exist for years, if ever.