Apple Reaches $250 Million Settlement in Apple Intelligence Marketing Lawsuit, Denies Wrongdoing

Apple has agreed to pay $250 million to settle a class-action lawsuit centered on the iPhone 16 launch and certain iPhone 15 models that were marketed as ready for the company's next wave of AI. The proposed settlement creates a $250 million fund and still needs court approval. Apple denies wrongdoing.

The lawsuit focused on Apple's promotion of Apple Intelligence, which the company introduced in June 2024. Plaintiffs argued that marketing led buyers to expect a upgraded Siri capable of understanding context and working across apps at launch or shortly thereafter. Instead, many received devices with only some Apple Intelligence tools.

Eligible customers who file approved claims are expected to receive at least $25 per eligible device. That amount could rise to as much as $95 per device depending on the number of claims filed and other settlement factors. The payments would not represent a large sum for most buyers given the cost of new iPhones.

U.S. buyers who purchased any iPhone 16 model between June 10, 2024, and March 29, 2025. Covered iPhone 16 models include the iPhone 16, iPhone 16 Plus, iPhone 16 Pro, iPhone 16 Pro Max and iPhone 16e.

It also includes the iPhone 15 Pro and iPhone 15 Pro Max but not every iPhone 15 model. The key details for eligibility are the device model, the purchase date between June 10, 2024, and March 29, 2025, and whether the phone was bought in the United States.

Eligible customers are expected to receive a notice by email or mail with instructions on how to file through a settlement website once the claims process opens.

Apple says it has rolled out many Apple Intelligence features. The settlement allows Apple to stay focused on its products. Fox News reported that it reached out to Apple for comment but did not hear back before its deadline.

The case touched on broader questions about how technology companies market future AI capabilities. A new iPhone can cost hundreds of dollars, and many consumers upgrade only when they believe they are obtaining meaningfully new features. The settlement is subject to final judicial approval before any payments can be distributed.