Apple has agreed to pay $250 million to settle a class-action lawsuit accusing the company of misleading iPhone buyers about artificial intelligence features it promoted but failed to deliver on schedule.
The proposed settlement, filed in federal court, covers eligible U.S. customers who purchased Apple Intelligence-compatible devices, including iPhone 16 models and the iPhone 15 Pro and iPhone 15 Pro Max, between June 10, 2024, and March 29, 2025. The agreement still requires court approval, with a hearing scheduled for June 17, 2026.
The lawsuit alleged that Apple’s marketing campaign led consumers to believe that a more advanced, AI-powered version of Siri would be available on new iPhones or released shortly after purchase. Plaintiffs argued that some buyers paid a premium for devices based on those promised features, only for Apple to delay the most significant Siri upgrades until 2026.
Under the settlement, eligible customers could receive between about $25 and $95 per device, depending on how many valid claims are filed. Roughly 36 million to 37 million devices may be covered. Apple has not admitted wrongdoing as part of the agreement and has maintained that it delivered other Apple Intelligence features while continuing work on Siri improvements.
The case followed growing criticism of Apple’s AI rollout. The company unveiled Apple Intelligence at its 2024 Worldwide Developers Conference, presenting it as a major step toward a more personal and context-aware iPhone experience. But delays to Siri’s most ambitious upgrades fueled complaints that Apple had overstated what customers would receive at launch. The Better Business Bureau’s National Advertising Division also urged Apple to revise advertising that suggested the new AI-powered Siri was already available.
The settlement comes as Apple faces pressure to prove it can compete with rivals such as OpenAI, Google and Samsung in the fast-moving artificial intelligence market. While Apple has emphasized privacy-focused, on-device AI tools, investors and customers have watched closely for signs that its Siri overhaul can match the capabilities of newer generative AI assistants.
For iPhone buyers, the settlement could bring modest compensation. For Apple, it is a costly reminder that in the AI race, marketing promises can carry legal consequences when product delivery falls behind expectations.
