Apple Agrees to $250 Million Settlement Over AI Claims—Here's Who Can Get Paid

Summary

Apple agreed to pay $250 million to settle a class-action lawsuit alleging it falsely advertised AI features for the iPhone 15 and iPhone 16 that did not materialize. Consumers claimed Apple promoted Apple Intelligence and enhanced Siri at launch in June 2024, but these capabilities were missing when devices shipped in September 2024. Subsequent delays and disabled features, such as upgraded Siri and notification summaries, further fueled complaints. Although Apple denied wrongdoing, it agreed to compensate eligible U.S. buyers with payouts of $25 to $95 per device, covering roughly 36 million units purchased between June 10, 2024, and March 29, 2025. The settlement comes as Apple transitions its AI strategy, with its AI chief retiring and a new partnership with Google for Gemini-powered features. This legal outcome is among the first major settlements addressing AI marketing claims, setting precedent as regulators and courts scrutinize the gap between advertised and actual AI capabilities in consumer tech products.