Owners of iPhones may soon receive cash payments ranging from $25 to $95 following a significant settlement in a class-action lawsuit. Apple has agreed to a $250 million resolution over allegations of false advertising concerning its artificial intelligence capabilities. This settlement arises from claims that consumers were misled by Apple’s marketing when the company introduced the iPhone 16 in 2024, highlighting new AI enhancements for its virtual assistant, Siri, under a campaign dubbed “Apple Intelligence.”
The lawsuit, lodged in the Northern District of California on behalf of U.S. consumers, contends that Apple exaggerated the availability of AI features that ultimately did not materialize as advertised. Although Apple aimed to bolster its competitive position amid a surge in AI advancements, it has yet to deliver the Siri upgrades that many expected.
Legal representatives for impacted iPhone buyers recently sought preliminary approval for the settlement. If sanctioned by a judge, it could represent one of the largest payouts from Apple in a consumer lawsuit. The settlement is estimated to encompass around 37 million devices sold in the U.S. between June 10, 2024, and March 29, 2025. This includes all iPhone 16 models as well as the iPhone 15 Pro and iPhone 15 Pro Max.
The payment structure indicates that eligible device owners would receive a minimum of $25, with the potential for that amount to increase based on the total number of claims submitted, among other considerations. Affected customers will be contacted through email or traditional mail to inform them about the claim process via a designated settlement website.
Reports indicate that Apple underestimated consumer excitement for the promised Siri upgrades, leading to dissatisfaction among buyers when the features were delayed. Many consumers expressed that they would have reconsidered their purchases or opted for lower-priced alternatives had they been aware that the AI enhancements were not yet ready for deployment.
As the landscape of AI technology evolves, Apple still trails behind competitors like Google and Samsung, which have launched advanced features on their devices. Industry expectations are high for Apple to finally present the awaited Siri improvements, with an announcement anticipated during the company’s upcoming annual developer conference.
