Apple has reached a $250 million settlement in a U.S. class action lawsuit alleging the company misled consumers regarding the availability of its artificial intelligence (AI) features on recent iPhone models. The settlement pertains to customers who bought iPhone 16 and iPhone 15 Pro models between June 10, 2024, and March 29, 2025. Eligible claimants could receive $25 per device, potentially increasing to $95 based on the number of claims filed. The legal team at Clarkson Law Firm, handling the case, provided details in a recent blog post.
The 2025 lawsuit contended that Apple’s marketing created a consumer expectation that its Apple Intelligence suite of AI tools would be fully operational upon launch. Plaintiffs argued that the devices actually lacked certain functionalities, raising concerns about how tech companies communicate evolving AI capabilities to consumers.
While Apple initially showcased its AI plans during the 2024 Worldwide Developers Conference, featuring a personalized Siri, the iPhone 16 release in September did not immediately deliver all promised features, despite marketing emphasizing the devices as optimized for Apple Intelligence. Apple later rolled out features in stages, including Image Playground, Genmoji, and integration with ChatGPT within Siri. A more advanced Siri version is anticipated to debut later this year.
Apple faced regulatory scrutiny following the lawsuit. In April, the U.S. National Advertising Division recommended Apple modify or remove claims suggesting immediate availability of Apple Intelligence features on its website. Apple responded by pulling an advertisement featuring actress Bella Ramsey showcasing the enhanced Siri functionality on the iPhone 16.