Apple Settles iPhone AI Advertising Lawsuit for $250 Million, No Wrongdoing Admitted

Apple has agreed to a $250 million settlement to resolve a consolidated class action lawsuit accusing it of false advertising around its Apple Intelligence features, including an enhanced Siri. The settlement was filed Tuesday in California federal court. Apple did not admit any wrongdoing.

U.S. District Court for the Northern District of California still needs to approve the settlement. The lawsuit was filed last year and accused Apple of misleading consumers about the availability of Apple Intelligence capabilities on the iPhone.

A revised complaint was filed last week for the consolidated class of iPhone buyers. S. consumers.

U.S. buyers of iPhone 15 and iPhone 16 models purchased between June 2024 and March 2025. The settlement covers people in the US who bought an iPhone 15 or iPhone 16 between June 2024 and March 2025.

It applies to purchasers of iPhone 16 model, iPhone 15 Pro or iPhone 15 Pro Max between June 10, 2024, and March 29, 2025. Approximately 37 million iPhone owners are eligible according to the court filing. Roughly 37 million devices purchased in the United States are eligible according to a court filing.

Eligible customers will initially receive $25 per device. The final payment may increase or decrease but will not exceed $95 per device.

The proposed $250 million settlement would compensate millions of consumers who bought the iPhone 16, iPhone 15 Pro or iPhone 15 Pro Max. Consumers will be notified via email or mail about submitting a form to collect the funds. The New York Times reported that some iPhone owners will be eligible to receive $25 to $95 over claims that Apple oversold its artificial intelligence system Apple Intelligence.

Apple settled legal claims that it misled consumers about AI capabilities available on the iPhone. The settlement was reached this week according to Apple. An Apple spokeswoman said the lawsuit was focused on the availability of two additional features in a lineup of many released as part of its Apple Intelligence rollout.

"We resolved this matter to stay focused on doing what we do best, delivering the most innovative products and services to our users," an Apple spokesperson said. The settlement signals the latest development in litigation stemming from Apple's 2024 marketing of AI tools, including features promised to make Siri more conversational and capable of helping users write, summarize messages and edit photos.

Lawyers for the plaintiffs had argued in the revised complaint that Apple's campaign promoted AI capabilities that did not exist at the time of purchase.