Apple has agreed to pay a total of $250 million (£184 million) to settle a lawsuit that accused the company of misleading consumers over the artificial intelligence features of its iPhones.
According to a settlement filed on Tuesday in a federal court in California, Apple denied any wrongdoing but agreed to resolve claims brought under a major consolidated class-action lawsuit filed last year, reports BBC.
The lawsuit alleged that Apple falsely advertised its AI tools, branded as Apple Intelligence, including upgrades to its Siri voice assistant.
Under the proposed settlement, US customers who purchased an iPhone 15 or iPhone 16 between June 2024 and March 2025 could receive payouts ranging from $25 to $95.
An Apple spokesperson said the case centered on “the availability of two additional features” among several introduced as part of the 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,” the spokesperson said.
In an amended complaint submitted last week, lawyers representing iPhone buyers argued that Apple’s promotion of its AI tools amounted to false advertising.
They claimed Apple marketed capabilities that “did not exist at the time, do not exist now, and will not exist for two or more years, if ever,” while presenting them as a major technological breakthrough.
The complaint also alleged that Apple accelerated its AI push to keep pace in the growing competition among major tech firms, driven by companies such as OpenAI and Anthropic.
Tim Cook has also faced criticism in recent years over claims that Apple has not moved quickly enough on innovation.
Lawyers further alleged that Apple marketed a more advanced Siri that would evolve from a “limited voice interface into a full-fledged personal AI assistant,” but failed to deliver.
“The iPhone 16 was delivered to consumers without Apple Intelligence, and Enhanced Siri never came,” the complaint said.
