Apple has agreed to pay a collective $250 million (£184 million) to settle a class action lawsuit accusing the company of misleading iPhone buyers about its artificial intelligence capabilities, according to bbc.com.
The settlement, filed Tuesday in a California federal court, resolves claims that the tech giant used false advertising to promote its 'Apple Intelligence' suite and an enhanced Siri voice assistant.
While the company agreed to the deal, Apple did not admit to any wrongdoing. The settlement covers individuals who purchased an iPhone 15 or iPhone 16 between June 2024 and March 2025.
Eligible buyers will receive payments ranging from $25 to $95.
An Apple spokeswoman stated the lawsuit focused specifically on "the availability of two additional features" within a much larger rollout of Apple Intelligence.
"We resolved this matter to stay focused on doing what we do best, delivering the most innovative products and services to our users," the spokesperson said.
Allegations of deceptive marketing
Lawyers for the plaintiffs filed a revised complaint last week, alleging that Apple's marketing campaign for its AI features constituted false advertising.
According to bbc.com, the legal team argued that Apple promoted capabilities that were non-existent at the time of launch and may not arrive for years.
"Apple promoted AI capabilities that did not exist at the time, do not exist now, and will not exist for two or more years, if ever, all while marketing them as the breakthrough innovation," the lawyers wrote.
The lawsuit claims Apple launched this marketing push to keep pace with competitors like OpenAI and Anthropic.
Critics have frequently targeted outgoing CEO Tim Cook, suggesting his leadership lacked the necessary innovation to compete in the evolving AI landscape.
A central part of the dispute involved the promise of a transformed Siri. The lawsuit alleges Apple marketed a version of the assistant that would evolve from a "limited voice interface into a full-fledged personal AI assistant."
However, the plaintiffs' lawyers noted that the promised technology failed to materialize. "The iPhone 16 was delivered to consumers without 'Apple Intelligence,' and Enhanced Siri never came," the lawyers wrote, according to the report.
