Some iPhone owners are in line to receive cash payments of up to $95 from Apple after the company reached a $250 million settlement Tuesday in a class-action lawsuit over false advertising about its artificial intelligence capabilities.
Apple touted new AI features for its Siri virtual assistant when it launched the iPhone 16 in 2024, as part of new software updates the company billed as “Apple Intelligence.”
The company is still struggling to keep up with its tech rivals amid the AI boom, but two years later it still hasn’t delivered on Siri’s revamp.
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The lawsuit, filed on behalf of U.S. consumers in federal court in San Francisco for the Northern District of California, alleged that Apple misled consumers with a marketing campaign that promoted features that did not yet exist and induced them to buy the devices.
According to a court filing, attorneys for the clients asked a court for preliminary approval of the proposed $250 million settlement. If a judge approves it, it would be one of the largest settlements in history for Apple.
The deal covers around 37 million devices purchased in the United States between June 10, 2024 and March 29, 2025, including all iPhone 16 models and the iPhone 15 Pro and iPhone 15 Pro Max.
Owners are eligible for a payment of at least $25 for each device, and that amount could increase to $95 depending on how many other claims are filed “and other factors,” the document said.
Customers will be notified by email or mail that they can file a claim on a settlement website, he said.
“Apple has reached an agreement to resolve claims related to the availability of two additional features“, the company reported in a statement. “We resolved this issue to stay focused on doing what we do best: offering the most innovative products and services to our users.”.
Apple, based in Cupertino, California, was caught off guard by intense consumer interest in Siri’s AI features. Buyers were furious after learning that the new features would be released later than expected, according to the document.
The document stated that “they would not have purchased the Eligible Devices, or would have paid significantly less, if they had known that the enhanced Siri features were not available”.
Apple’s AI features continue to be developed, while rivals such as Google and Samsung have been incorporating more of the technology into their own devices. The company is expected to unveil its Siri update this year, most likely at its annual developer conference next month.
Apple noted in its statement that it has “introduced dozens of functions” since launching Apple Intelligence, such as Visual Intelligence and Live Translations.
This story was translated from English by an AP editor with the help of a generative artificial intelligence tool.