Apple has agreed to pay $250 million to settle a lawsuit accusing the company of misleading customers about artificial intelligence features on its iPhones.
The settlement, filed on Tuesday, May 5, in a California federal court, resolves claims in a consolidated class action brought by US iPhone buyers. Apple did not admit wrongdoing but opted to settle the case.
The lawsuit centred on the company’s promotion of its AI system, Apple Intelligence, including improvements to Siri. Plaintiffs argued that Apple advertised capabilities that were either unavailable at launch or had not yet been developed.
Under the agreement, eligible customers in the United States who purchased an iPhone 15 or iPhone 16 between June 2024 and March 2025 will receive compensation ranging from $25 to $95.
An Apple spokesperson said the case focused on the availability of two specific features within a broader rollout of Apple Intelligence. The company said it chose to settle to remain focused on product innovation.
Lawyers representing the plaintiffs argued that Apple’s marketing campaign overstated the readiness of its AI tools. They claimed the company promoted features that “did not exist at the time” and might not be available for years, if at all.
The complaint also suggested Apple intensified its AI messaging to keep pace with competitors such as OpenAI and Anthropic in the rapidly evolving artificial intelligence space.
The case adds to ongoing scrutiny of Apple’s innovation strategy under CEO Tim Cook, particularly regarding advancements in AI and smart assistant technology.
