Owners of some iPhones are in line to get cash payments of up to $95 from Apple after the company on Tuesday reached a $250 million settlement in a class-action lawsuit for false advertising of its artificial intelligence capabilities.
Apple trumpeted new AI features for its virtual assistant Siri when it rolled out the iPhone 16 in 2024, part of new software updates that the company billed as “Apple Intelligence.”
The company has been scrambling to keep up with tech rivals amid the AI boom but still hasn’t delivered on the Siri revamp two years later.
The lawsuit, filed on behalf of U.S. consumers in the San Francisco federal court for the Northern District of California, alleged that Apple deceived consumers with a marketing campaign that promoted features that did not yet exist and misled them into buying the devices.
Lawyers for the iPhone buyers asked a court for preliminary approval of the proposed $250 million settlement, according to a court filling. If approved by a judge, it would be one of the biggest ever for Apple.
The settlement covers about 37 million devices bought in the United States between June 10, 2024 and March 29, 2025, including all iPhone 16 models and the iPhone 15 Pro and iPhone 15 Pro Max.
Owners are eligible for a payment of at least $25 for each device, and that amount could go up to $95 depending on how many other claims are filed “and other factors,” the filing said.
Customers will be notified by email or mail that they can file a claim on a settlement website, it said.
“Apple has reached a settlement to resolve claims related to the availability of two additional features,” the company said in a statement. “We resolved this matter to stay focused on doing what we do best, delivering the most innovative products and services to our users.”
Apple, based in Cupertino, California, was caught off-guard by the intense consumer interest in the Siri AI features. Buyers were angered after finding out that the new features would be released later than expected, the filing said.
They “would not have purchased the Eligible Devices or would have paid significantly less, had they known Enhanced Siri features were not available,” the filling said.
Apple’s AI features remain in development even as rivals Google and Samsung have been rolling out more of the technology on their own devices. The company is expected to unveil its Siri upgrade this year, most likely at its annual developer conference next month.
Apple said in its statement that it has “introduced dozens of features” since it launched Apple Intelligence, such as Visual Intelligence and Live Translations.
The Associated Press contributed to this report.