Apple Inc. has agreed to a $250 million payout to settle a class action lawsuit brought by iPhone users in the United States, who alleged the company misrepresented its artificial intelligence capabilities.
The agreement, filed in a federal court in California on Tuesday, resolves a consolidated case that began in 2024. Although the company denied any liability, it chose to settle to avoid a lengthy legal battle.
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At the heart of the case was the promotion of its AI platform, Apple Intelligence, which was marketed as a key feature in newer iPhone models. Plaintiffs claimed the tech giant exaggerated both the readiness and performance of these tools, particularly upgrades to Siri.
Court filings indicate that customers who purchased the iPhone 15 or iPhone 16 between June 2024 and March 2025 may qualify for compensation ranging from $25 to $95, depending on the number of valid claims.
In response, a company representative explained that the dispute focused on the rollout timeline of “two additional features” within a broader suite of AI tools. The firm added that settling the case would allow it to concentrate on innovation and improving its products.
However, lawyers for the plaintiffs argued that the company’s advertising created inflated expectations. They maintained that some of the highlighted AI features were either unavailable at launch or unlikely to be delivered within a reasonable period.
The lawsuit also suggested that the company’s strong push into AI was partly driven by competition in the fast-evolving space, where firms such as OpenAI and Anthropic have gained prominence.
Critics further raised concerns about the pace of innovation under CEO Tim Cook, arguing that the portrayal of a highly advanced, AI-powered Siri capable of acting as a full personal assistant did not reflect users’ actual experience.
They also alleged that the iPhone 16 launched without the promised “Apple Intelligence” capabilities, while the upgraded version of Siri remains unreleased.
The settlement represents one of the most significant legal disputes linked to AI marketing claims in consumer technology, highlighting increasing scrutiny over how companies present emerging technologies to the public.
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