Apple Settles Class-Action Lawsuit Over Apple Intelligence Rollout for $250 Million
The company reached the agreement on Tuesday in a class-action suit alleging it misrepresented Apple Intelligence features including Enhanced Siri. Eligible iPhone owners in the U.S. could receive up to $95 per device. Apple maintained its advertising disclosed features would arrive over time and said it has delivered dozens of AI capabilities.
pymnts.comApple has agreed to settle a class-action lawsuit for $250 million after the tech giant was accused of marketing Apple Intelligence technologies that "did not exist" yet. The settlement agreement was reached on Tuesday, May 5, 2026 or May 6, 2026. A court filing regarding the settlement occurred on Tuesday, May 5 or 6, 2026.
Post by @ABC on X
Plaintiffs asked a judge on Tuesday to approve the settlement, which they described as within the range of what is fair, reasonable, and adequate. The settlement paves the way for payouts of up to $95 per eligible device. The settlement will provide class members up to $95 per device depending on claim volume and other factors.
There are approximately 37 million eligible devices. The payout applies to iPhone 16, iPhone 16e, iPhone 16 Plus, iPhone 16 Pro, iPhone 16 Pro Max, iPhone 15 Pro and iPhone 15 Pro Max. It covers iPhone users who purchased eligible devices between June 10, 2024, and March 29, 2025.
The settlement will apply to those who purchased the eligible devices and who reside in the United States and purchased an Eligible Device in the United States for purposes other than resale. The lawsuit was originally filed in March 2025. It alleged that Apple violated consumer protection laws when it advertised its new generation of iPhones as a breakthrough in artificial intelligence including significant enhancements to Siri.
The lawsuit specifically accused Apple of introducing Enhanced Siri capabilities such as AI-powered digital assistant recollection and calendar reminders even though they did not exist or were materially misrepresented. The plaintiffs alleged Apple saturated the market with deceptive ads promoting that technology which were viewed widely by the public online and in ad spots during major broadcast events.
They said the promotion led consumers to buy iPhones due to the perception that Siri had some of those enhanced AI features.
Apple has maintained that its ads were not misleading because it disclosed from the outset the Apple Intelligence features would be delivered over time and continue to evolve. The company has maintained that it successfully delivered more than 20 Apple Intelligence features.
Apple argued that consumers purchase new iPhones for any number of reasons that have nothing to do with Enhanced Siri features.
An Apple spokesperson confirmed the settlement in a statement to ABC News on Wednesday. "Since the launch of Apple Intelligence, we have introduced dozens of features across many languages that are integrated across Apple's platforms, relevant to what users do every day, and built with privacy protections at every step," the spokesperson said.
" The spokesperson added, "Apple has reached a settlement to resolve claims related to the availability of two additional features.
Key Facts
Story Timeline
4 events- May 7, 8:02 PM ET
2 new sources added: The New York Times, BBC News
2 sourcesThe New York Times · BBC News - March 2025
Class-action lawsuit originally filed alleging Apple violated consumer protection laws with deceptive AI advertising
1 sourcecourt filing - Tuesday, May 5 or 6, 2026
Settlement agreement reached for $250 million; plaintiffs asked judge to approve; court filing submitted
3 sourcesunattributed · plaintiffs · court filing - Wednesday, May 6, 2026
Apple spokesperson confirmed settlement to ABC News and issued detailed statement on features delivered
1 sourceApple spokesperson
Potential Impact
- 01
Approximately 37 million iPhone owners in the U.S. who bought listed models for personal use become eligible for payments of up to $95 each depending on claim volume
- 02
Apple avoids prolonged litigation and can focus resources on product development as stated in its settlement comment
- 03
Sets precedent for advertising claims around phased AI feature rollouts in consumer electronics
Transparency Panel
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