Apple’s $250 million settlement: Is your iPhone on the list?

Apple has agreed to a massive $250 million settlement to resolve a class-action lawsuit alleging the company misled customers about its “Apple Intelligence” AI features. 

The company will pay a collective amount to settle claims of false advertising, though it denies any legal wrongdoing. 

The settlement covers US customers who purchased an iPhone 15 Pro, 15 Pro Max, or any iPhone 16 model between June 10, 2024, and March 29, 2025.

Eligible buyers are expected to receive between $25 and $95 per device, depending on the total number of claims filed. The lawsuit accused Apple of marketing a revolutionary AI-powered Siri that did not actually exist at the time of purchase. 

Plaintiffs pointed to high-profile ad campaigns that suggested advanced AI capabilities were available now, when many features were actually delayed by months or years.

While Apple released some tools “Genmoji’ and “Writing Tools”, the lawsuit claimed the centerpiece-a fully contextual Siri that could act across apps-never arrived as promised. 

In this regard, an Apple spokeswoman said the lawsuit was focused on “the availability of two additional features” in a lineup of many released as part of its Apple Intelligence rollout.

“We resolved this matter to stay focused on doing what we do best, delivering the most innovative products and services to our users”, she said.

Why it happened

Apple reportedly rushed its marketing to catch up with competitors like OpenAI and Anthropic as investors worried the company was falling behind in the generative AI boom. 

The settlement follows a period of transition for Apple, including the retirement of AI chief John Giannandrea in late 2025 and a new partnership to use Google’s Gemini models to power Siri features.

“The iPhone 16 was delivered to consumers without “Apple Intelligence, "and Enhanced Siri never came,” the lawyers wrote.

A federal judge in California gave preliminary approval to the deal on May 5, 2026. A final hearing to officially close the matter is scheduled for June 17, 2026. 

The company maintains that the dispute was only over two additional features and that it settled primarily to avoid a lengthy legal battle and stay focused on product innovation.