Technology giant Apple has agreed to pay out $250 million (£184 million) to settle a class-action lawsuit brought by iPhone customers, who accused the company of deceptive marketing around its promised Apple Intelligence artificial intelligence capabilities. The legal dispute, which was resolved in a settlement filed with a California federal court on Tuesday, closes out consolidated claims that were first filed last year. Notably, Apple has not admitted to any wrongdoing as part of the agreement.
The suit centers on allegations that Apple misled consumers through false advertising for its Apple Intelligence suite, a lineup of AI-powered upgrades that includes a heavily promoted overhaul of its Siri voice assistant. Plaintiffs claim the company marketed advanced AI features that were not available at the time of purchase, have not launched to date, and may not roll out for at least two years — if they ever arrive at all.
Under the terms of the settlement, eligible consumers who purchased either an iPhone 15 or iPhone 16 between June 2024 and March 2025 will receive payouts ranging from $25 to $95 per device.
An Apple spokesperson addressed the litigation, noting that the claims only targeted the availability of two specific features out of the full slate of Apple Intelligence tools the company has already rolled out. “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.
In a revised complaint submitted last week for the consolidated class action, legal representatives for the iPhone buyers argued that Apple’s AI marketing campaign constituted deceptive commercial practice. “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 legal team wrote.
The complaint further alleges that Apple rushed this aggressive AI marketing push specifically to keep pace in the high-stakes global AI race currently being led by newer players like OpenAI and Anthropic. Outgoing Apple CEO Tim Cook has faced repeated public criticism over recent years from analysts and consumers who argue the company has lagged behind competitors in rolling out breakthrough innovative products.
A core part of the plaintiffs’ argument centers on the promised upgraded Siri, which Apple marketed as a transformative update that would turn the tool from a “limited voice interface into a full-fledged personal AI assistant.” According to the legal team, this reimagined Siri never materialized for consumers, and the recently launched iPhone 16 shipped to customers without any trace of the full Apple Intelligence platform Apple had promoted.