Apple AI Settlement to Pay $250 Million to iPhone Users
Apple has agreed to settle a class-action lawsuit with iPhone owners, potentially providing payments of up to $95 per device. The lawsuit alleged that Apple falsely advertised AI features in their iPhone lineup. The proposed $250 million settlement, if approved by a judge, would offer a presumptive payment of $25 per device, with the actual amount potentially increasing up to $95 depending on claim volume and other factors.
The settlement comes just weeks before Apple’s Worldwide Developers Conference, where the company is expected to announce a new, AI-powered Siri. The lawsuit, filed in March 2025, accused Apple of misleading consumers by advertising AI features that were not delivered in the iPhone 16 lineup. This led shoppers to purchase products at a premium price based on false advertising claims.
Despite the settlement, Apple continues to deny all allegations, stating that they resolved the matter to focus on delivering innovative products and services to their users. The parties involved have moved for preliminary approval from a federal judge in California, with a hearing scheduled for next month.
The slow rollout of AI-powered Siri has been a significant focus in the tech industry over the past two years. The lawsuits against Apple argued that the company overpromised and underdelivered on AI features in Siri, which were aggressively marketed starting in the summer of 2024. Apple spokesperson Marni Goldberg stated that the company has delivered promised features, including Visual Intelligence, Live Translation, Writing Tools, Genmoji, Clean Up, and more. The settlement resolves claims related to the availability of two additional features.
The settlement covers the entire iPhone 16 lineup and select iPhone 15 models purchased between June 10, 2024, and March 29, 2025. If approved, iPhone owners may be eligible for payments ranging from $25 to $95 per device, depending on claim volume and other factors.
