- In class lawsuit
Apple Inc. has agreed to pay $250 million to resolve a class action lawsuit filed by iPhone users in the United States who accused the tech giant of misleading advertising regarding its artificial intelligence features.
The settlement, filed in a California Federal Court on Tuesday, brings an end to a consolidated lawsuit initiated in 2024. While Apple denied any wrongdoing, it opted for a financial settlement to close the case and avoid prolonged litigation.
At the centre of the dispute is Apple’s promotion of its AI system, known as Apple Intelligence, which was introduced as part of its latest iPhone innovations. The lawsuit alleged that the company overstated the availability and capabilities of these features, particularly improvements to its voice assistant, Siri.
According to court documents, eligible customers who purchased the iPhone 15 or iPhone 16 between June 2024 and March 2025 may receive compensation ranging from $25 to $95, depending on the number of claims filed.
Responding to the development, an Apple spokesperson clarified that the case centred on the availability of “two additional features” within a broader rollout of AI tools. The company stated that it chose to settle in order to focus on innovation and delivering improved products to its users.
However, legal representatives of the plaintiffs argued that Apple’s marketing created unrealistic expectations. In a revised complaint, they claimed the company advertised AI capabilities that were either unavailable at launch or unlikely to materialise within a reasonable timeframe.
The lawsuit further suggested that Apple’s aggressive promotion of its AI features was part of an effort to remain competitive in the evolving artificial intelligence space, where firms like OpenAI and Anthropic have gained significant attention.
Critics also pointed to long-standing concerns about innovation under Apple’s leadership, particularly during the tenure of Chief Executive Officer Tim Cook. The plaintiffs maintained that the company’s portrayal of an advanced, AI-powered Siri capable of functioning as a fully-fledged personal assistant did not match the reality experienced by users.
They further alleged that the iPhone 16 was released without the promised “Apple Intelligence” features, while the anticipated enhanced version of Siri had yet to materialise.
The settlement marks one of the most notable legal challenges tied to AI-related marketing claims in the consumer technology space, underscoring growing scrutiny over how companies present emerging technologies to the public.