Apple has agreed to pay up to $250 million to settle a lawsuit accusing the company of misleading iPhone buyers about its artificial intelligence features.
The settlement, filed in California federal court, does not include any admission of wrongdoing from Apple, but will resolve a major class action lawsuit brought by customers last year.
The lawsuit claimed Apple falsely advertised its AI system, called Apple Intelligence, including promised upgrades to Siri.
Under the deal, eligible US customers who purchased an iPhone 15 or iPhone 16 between June 2024 and March 2025 could receive between $25 and $95.
Apple said the case focused on “the availability of two additional features” tied to its broader Apple Intelligence rollout.
“We resolved this matter to stay focused on doing what we do best, delivering the most innovative products and services to our users,” an Apple spokesperson said.
Lawyers representing iPhone buyers argued that Apple marketed AI capabilities that either were unavailable at launch or still do not exist.
“Apple promoted AI capabilities that did not exist at the time, do not exist now, and may not exist for years, if ever,” the complaint stated.
The lawsuit also claimed Apple heavily promoted a more advanced Siri experience as part of its effort to compete with AI companies like OpenAI and Anthropic.
According to the filing, Apple marketed Siri as evolving into a full AI assistant, but customers allegedly received devices without many of the promised features.
Lawyers argued that the iPhone 16 launched without key Apple Intelligence tools, including the upgraded Siri experience highlighted in Apple’s advertising.