CUPERTINO, California – Apple has agreed to a massive $250 million settlement to resolve a class-action lawsuit accusing the tech giant of misleading consumers regarding the artificial intelligence capabilities of its “Apple Intelligence” and Siri systems.
The settlement, filed in a California federal court on Tuesday, marks one of the largest payouts in Apple’s history related to product marketing. The lawsuit alleged that Apple falsely advertised advanced AI features for the iPhone 15 and iPhone 16 series—features that plaintiffs claimed did not exist at the time of purchase and remained unavailable for years.
The Core of the Dispute: Promises vs. Reality
The legal battle centered on Apple’s high-profile marketing campaign launched during the iPhone 16 rollout in late 2024. Ads featuring celebrities and sweeping promises of a “more personalized Siri” suggested a voice assistant capable of seamless app-to-app interaction and complex task management.
However, the lawsuit argued that these features were essentially “vapourware.” Plaintiffs alleged that Apple “promoted AI capabilities that did not exist at the time, do not exist now, and will not exist for two or more years” simply to drive hardware sales during a period of intense global competition.
Who Is Eligible for a Payout?
The settlement covers an estimated 36 million devices in the United States. While Apple admits no wrongdoing as part of the deal, the following groups may be eligible for compensation:
- Eligible Devices: iPhone 15 Pro, 15 Pro Max, and the entire iPhone 16 lineup (including 16e, Plus, Pro, and Pro Max).
- Purchase Period: Devices bought in the U.S. between June 10, 2024, and March 29, 2025.
- Payout Estimates: Claimants are expected to receive an initial payment of $25 per device, though that figure could rise to as much as $95 depending on the number of approved claims.
Apple’s Defense
In a statement to the press, an Apple spokesperson emphasized that the company chose to settle to avoid the distraction of prolonged litigation.
“We resolved this matter to stay focused on what we do best: delivering the most innovative products and services to our users,” the company stated. Apple continues to maintain that it acted in good faith, noting that it has already introduced numerous “Apple Intelligence” features, including Writing Tools, Live Translation, and Genmoji, since the platform’s launch.
A Warning Shot for the AI Industry
Legal analysts suggest this settlement is a landmark moment for the tech industry, which has been under fire for “AI-washing”—the practice of overhyping artificial intelligence features to boost stock prices or sales.
“This is an inflection point,” said Ryan Clarkson, managing partner at Clarkson Law Firm. “Consumers should feel protected when deciding where to spend their hard-earned dollars, especially when being sold on the promise of ‘future’ technology.”
The settlement comes just weeks before Apple is expected to finally unveil the long-awaited “personalized Siri” at its upcoming June developer conference.
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