• Cash settlement ends Apple lawsuit without admission of wrongdoing
• Claims of misleading AI marketing and delayed feature rollout

Apple has agreed to pay around $250 million to settle a class-action lawsuit in the United States, which accused the company of misleading iPhone users about the capabilities of its newly promoted artificial intelligence features.

According to the settlement agreement filed in a federal court in California, Apple did not admit any legal wrongdoing or liability, but agreed to bring the case—consolidated from a broader class action filed last year—to a close.

The lawsuit alleged that the company engaged in misleading advertising about AI features on its devices under the name “Apple Intelligence,” including significant upgrades to the Siri voice assistant.

Under the agreement, some iPhone users in the United States who purchased iPhone 15 and iPhone 16 models between June 2024 and March 2025 will receive compensation ranging between $25 and $95 per user.

It is still unclear whether the settlement will extend to users outside the United States.

An Apple spokesperson said the case focused on “the availability of two additional features within a broad set of capabilities” introduced under the Apple Intelligence system, adding: “We chose to settle this matter to focus on what we do best—delivering innovative products and services to our users.”

Meanwhile, lawyers for the plaintiffs argued in an amended complaint that Apple’s marketing overstated its AI capabilities, claiming the features “did not exist at launch, do not exist today, and may not arrive for years, if at all.”

They added that Apple aimed to keep pace with the rapidly evolving AI race among major tech companies, amid competition from firms such as OpenAI and Anthropic.

The complaint also stated that marketing materials suggested a major transformation of Siri—from a “limited voice interface” into a fully integrated personal AI assistant—which, according to the lawsuit, never materialized.

It further claimed that iPhone 16 devices were released without the promised Apple Intelligence features, while the upgraded version of Siri that was advertised to consumers was never delivered.