Apple agreed yesterday to a $250 million settlement in a class-action lawsuit accusing the company of misleading consumers about artificial intelligence features on recent iPhones. The deal, filed in the U.S. District Court for the Northern District of California, covers purchases of iPhone 15 Pro, iPhone 15 Pro Max, and all iPhone 16 models, including the 16, 16 Plus, 16 Pro, 16 Pro Max, and 16e, made between June 10, 2024, and March 29, 2025.

Eligible U.S. consumers and businesses who submit valid claims will receive a presumptive payment of $25 per device from the non-reversionary fund, with the amount potentially rising to $95 or falling, depending on the total number of claims after deductions for administrative costs and attorneys' fees. The settlement awaits preliminary approval from Judge Noël Wise in the case Landsheft v. Apple Inc. (No. 5:25-cv-02668-NW). Notice to potential class members will be sent within 45 days of approval, and claim forms will become available soon via the settlement administrator's website.

The lawsuits, consolidated in 2025, stemmed from Apple's marketing campaign ahead of the iPhone 16 launch in September 2024. Plaintiffs alleged the company oversold Apple Intelligence, particularly an enhanced Siri assistant teased at WWDC in June 2024, through ads claiming advanced capabilities like better personalization and on-device processing that were not available at launch. Apple later delayed the Siri upgrade in March 2025 due to quality issues and has since incorporated features gradually, including Visual Intelligence, Live Translation, Writing Tools, Genmoji, and Clean Up. In January 2026, Apple announced it would use Google's Gemini models to power future Siri enhancements, expected later this year.

Apple denied any wrongdoing in the agreement. "We resolved this matter to stay focused on doing what we do best, delivering the most innovative products and services to our users," spokeswoman Marni Goldberg said. The company highlighted dozens of Apple Intelligence features already rolled out across platforms and languages with privacy protections.

Co-lead counsel, including firms like Clarkson Law Firm and Cotchett, Pitre & McCarthy, secured the settlement after filing initial suits in 2025. The deal resolves claims related to two specific delayed features, with Apple committing to deliver additional Siri updates in future software releases at no extra cost.

The settlement affects an estimated 36 million devices and underscores challenges in Apple's AI push amid competition from rivals like Google and Microsoft.