Some iPhone users could see payouts soon. That’s because Apple agreed to pay $250 million to settle claims that it deceived consumers by advertising artificial intelligence features that were, well, artificial.
Those features — things like deeper personalization and interaction with third‑party apps — were not yet available on Apple devices at launch.
The settlement covers approximately 37 million devices, including all iPhone 16 models and some iPhone 15 models, and people who bought them within a certain time period could get up to $95 back. Here’s what you should know.
Background: Apple Intelligence
When the iPhone 16 was released in September 2024, it was promoted as the first iPhone built from the ground up for “Apple Intelligence,” a personal intelligence system for Apple devices that aims to integrate generative AI models with personal context to streamline tasks.
At the company’s developer conference that year, a nearly two-hour-long presentation touted how Apple’s famous voice assistant, Siri, would interact with messages, emails, calendars, and apps. Marketing efforts emphasized the new wave of AI features through a series of ads, including one featuring Bella Ramsey using Siri to jog her memory and create a customized memory video for a fish funeral.
The Class Action Lawsuit Was Filed Over Claims That Apple Misled Customers
The class action lawsuit was filed by plaintiff Peter Landsheft in the U.S. District Court for the Northern District of California in 2024 on behalf of U.S. consumers. Landsheft claimed that Apple falsely represented what the iPhone 16 could do to capitalize on consumer excitement for truly innovative, advanced AI features.
The complaint alleged that Apple touted these AI capabilities as the cornerstone of the new iPhone’s appeal and that Apple promised consumers a product that would redefine how people use smartphones in the new AI economy. The suit alleged that Apple’s marketing created unprecedented excitement in the market.
But the trouble was that Apple knew none of it was true, according to the lawsuit. The iPhone 16 was delivered to consumers without Apple Intelligence, and the touted new AI-powered Siri never came. In marketing a product that didn’t exist, the lawsuit alleged that Apple violated consumer protection laws.
Some iPhone Owners Could Get Up to $95
The class action settlement agreement noted that consumers who bought certain iPhones—iPhone 16, iPhone 16e, iPhone 16 Plus, iPhone 16 Pro, iPhone 16 Pro Max, iPhone 15 Pro, and iPhone 15 Pro Max—may be eligible for a payment. The phones must have been purchased between June 10, 2024, and March 29, 2025.
Claimants who qualify for the settlement will be notified by mail or email. They’ll be able to get $25 for each eligible device, but that amount could jump to $95 per device depending on how claims are approved. A settlement website should be created within the next few weeks, according to the Clarkson Law Firm, which filed the suit.
Apple Denies Wrongdoing, and New Features Are Coming
Apple denies wrongdoing and had previously moved to dismiss the case. The tech giant argued that its marketing campaign was not misleading because nearly two dozen Apple Intelligence features have already been delivered and because Apple said at the beginning that these features would be delivered over time and continue to evolve iteratively.
"Apple has reached a settlement to resolve claims related to the availability of two additional features. We resolved this matter to stay focused on doing what we do best, delivering the most innovative products and services to our users," the company said in a statement reported by Reuters.
And it sounds like Apple is staying focused because more features are coming. Although they were delayed, Apple executives confirmed that the new Siri features are now set to be unveiled at Apple’s annual Worldwide Developers Conference (WWDC 2026) next month, according to Reuters.
It’s expected that these features will be the ones that Apple had envisioned earlier, giving Siri the ability to take action for you within and across your apps. For example, a person might be able to use Siri to pull up a podcast recommended by a friend or track a family member’s flight information, all based on data stored on their iPhone.
Next Step: Preliminary Approval
Both parties have agreed to settle the case, but before things are final, the agreement must be approved by a judge. That hearing is set for June 17, according to the motion for preliminary approval. The deal would rank among the largest settlements ever for the company if approved.
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