Apple Agrees to $250 Million Settlement Over Misleading AI Claims

Apple announced a $250 million settlement to resolve a consolidated lawsuit filed in California federal court. The company did not admit wrongdoing but agreed to compensate purchasers of the iPhone 15 and iPhone 16 who bought the devices between June 2024 and March 2025. Eligible buyers will receive payments ranging from $25 to $95, depending on the model and purchase date.

The lawsuit alleged that Apple’s marketing promoted “Apple Intelligence” – an upgraded Siri voice assistant and other AI features – that did not exist at launch, were unavailable at the time of purchase, and would not be delivered for at least two years. Lawyers for the plaintiffs described the campaign as false advertising, claiming Apple presented the features as a breakthrough while they were, in fact, absent from the iPhone 16 and the promised Enhanced Siri never materialised.

Apple’s spokesperson framed the settlement as a step to keep the company focused on product innovation. The company highlighted that the dispute centered on “the availability of two additional features” within a broader rollout of Apple Intelligence, suggesting the broader suite of updates remains intact.

The payout translates to an average of roughly $0.10 per iPhone sold in the affected period, a modest financial hit for Apple’s $300 billion market cap. However, the case underscores growing scrutiny of tech firms’ AI claims as competitors like OpenAI and Anthropic accelerate development. Legal experts note that the settlement may prompt tighter disclosure standards for future AI‑related product announcements.

What to watch next: monitor Apple’s upcoming product releases for concrete AI functionality and any regulatory guidance that could shape how the company markets intelligent features.