iPhone users across the country are set to receive cash payments ranging from $25 to $95 each after Apple agreed Tuesday to pay $250 million to settle a major class-action lawsuit over misleading artificial intelligence advertising.
The legal dispute centers on Apple’s promotion of enhanced AI capabilities for Siri when the tech giant launched the iPhone 16 in 2024, marketing these features as part of new software called “Apple Intelligence.”
However, the California-based company has struggled to deliver on its AI promises while competing with other technology companies during the current artificial intelligence surge, and the promised Siri improvements remain unavailable two years after the initial announcement.
The federal lawsuit, filed in San Francisco’s Northern District of California court on behalf of American consumers, accused Apple of misleading customers through marketing campaigns that highlighted non-existent features, convincing people to purchase devices under false pretenses.
Legal representatives for iPhone purchasers have submitted the proposed $250 million settlement agreement to the court for preliminary approval, which would rank among Apple’s largest settlements if a judge gives the green light.
The agreement encompasses approximately 37 million devices sold in the United States from June 10, 2024, through March 29, 2025, covering all iPhone 16 versions plus the iPhone 15 Pro and iPhone 15 Pro Max models.
Device owners qualify for a minimum $25 payment per phone, with potential increases up to $95 based on the total number of submitted claims “and other factors,” according to court documents.
Eligible customers will receive email or postal notifications with instructions for submitting claims through a designated settlement website.
The Cupertino-based technology company reportedly underestimated consumer enthusiasm for the Siri AI enhancements. Purchasers expressed frustration upon learning the advertised features would arrive much later than anticipated, court filings revealed.
Customers “would not have purchased the Eligible Devices or would have paid significantly less, had they known Enhanced Siri features were not available,” the legal filing stated.
While competitors Google and Samsung continue expanding AI technology across their product lines, Apple’s artificial intelligence features remain under development. Industry observers expect the company to reveal its Siri upgrade sometime this year, likely during its annual developer conference scheduled for next month.
