Apple has agreed to pay $250 million to settle a major class action lawsuit accusing the company of misleading customers about AI powered Siri features promoted for newer iPhones. The lawsuit claimed Apple advertised advanced Apple Intelligence capabilities as a key selling point for the iPhone 16 lineup and select iPhone 15 Pro models, even though several of those features were not available when the devices launched.
The case was filed in California after Apple heavily promoted a smarter and more personalized Siri during its 2024 Worldwide Developers Conference. Advertisements suggested the upgraded assistant would be capable of understanding personal context, handling more advanced requests, and integrating deeply with apps and on screen content. However, customers who bought the new iPhones later discovered many of the promised features had been delayed until 2026.
According to court filings, plaintiffs argued Apple created a “clear and reasonable consumer expectation” that the AI features would be available at launch, leading many buyers to pay premium prices for the devices. The lawsuit covered purchases made in the United States between June 10, 2024, and March 29, 2025, and could affect around 36 to 37 million eligible iPhones.
If approved by the court, eligible users could receive between $25 and $95 per device depending on the number of claims submitted. Customers are expected to receive notifications with instructions on how to file for compensation once the settlement process officially begins.
Apple denied any wrongdoing as part of the agreement and said it has already released several Apple Intelligence features since the original announcement. In a statement, the company said it settled the lawsuit to remain focused on developing innovative products and services for users.
The controversy has become one of Apple’s biggest AI related setbacks in recent years and has intensified scrutiny over how technology companies market artificial intelligence products before they are fully ready for public release. Analysts say the case could set an important example for future consumer protection disputes involving AI advertising claims.
Sources: [Reuters], [The Verge], [TechRadar], [Creative Bloq]
