Apple has agreed to pay $250 million to settle a class action lawsuit alleging that the company overstated the readiness and availability of artificial intelligence features promoted ahead of the iPhone 16 launch, according to a report first published by the Financial Times.
The lawsuit focused on Apple’s marketing of Apple Intelligence, the company’s AI platform introduced during its 2024 Worldwide Developers Conference. Plaintiffs claimed Apple created the impression that advanced AI tools, including a significantly upgraded version of Siri, would be available sooner and with broader functionality than what customers ultimately received.
According to the complaint, consumers who purchased iPhone 15 and iPhone 16 models believed they were paying for devices equipped with advanced AI capabilities that were either incomplete, delayed, or unavailable at the time of purchase.
The lawsuit described Apple’s marketing practices as false advertising and argued that the company’s promotional material influenced buying decisions tied to features that had not fully launched.
Settlement Covers Eligible U.S. Customers
Apple did not admit wrongdoing as part of the agreement. The company chose to settle the case instead of continuing litigation proceedings.
Under the proposed settlement terms, eligible customers in the United States who purchased an iPhone 15 or iPhone 16 between June 10, 2024 and March 29, 2025 may receive compensation of up to $95 per device.
The complaint specifically highlighted Apple’s promotion of an upgraded Siri experience as part of Apple Intelligence.
Siri AI Upgrades Remain In Development
Apple has promoted a more advanced Siri assistant since unveiling Apple Intelligence in 2024. The updated version of Siri is expected to function more similarly to conversational AI systems such as ChatGPT and Claude.
Reports have suggested the upgraded Siri platform could rely on Google Gemini technology. More recent reports, however, indicate Apple’s next iPhone operating system may allow users to select from multiple third-party large language models instead of relying on a single AI provider.
The settlement comes shortly before Apple’s annual developer conference scheduled for June 8, where the company is expected to preview a newer version of its AI-focused Siri assistant.
Featured image credits: Flickr
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