Apple Settles AI Lawsuit for $250M, Offers Up to $95 Per Device

Apple has agreed to pay up to $95 per device as part of a $250 million settlement resolving claims that it misled customers about the artificial intelligence features of its Siri voice assistant. The class-action lawsuit, filed in federal court in the Northern District of California on behalf of U.S. consumers, alleges that Apple deceived customers by marketing 'Enhanced Siri features' that did not yet exist.

The settlement covers people who purchased an iPhone 16 model, iPhone 15 Pro, or iPhone 15 Pro Max between June 2024 and March 2025. Approximately 37 million iPhone owners are eligible, according to the court filing.

The plaintiffs claim that Apple's marketing misled buyers about what its Apple Intelligence system could do, including an extensive update of Siri. Lawyers in the case stated that 'Apple promoted AI capabilities that did not exist at the time, do not exist now, and will not exist for two or more years, if ever,' as reported by BBC News.

Customers will be notified by either email or mail if they can file a claim. An online social media campaign will also provide information about the settlement website and who is eligible. Eligible customers will initially receive $25 per device, with the final payment potentially increasing or decreasing based on the number of claims submitted but not exceeding $95 per device.

The settlement must still be approved by a federal judge in California at a hearing set for June 17. Apple has not admitted any wrongdoing as part of the settlement and stated that it resolved the matter to stay focused on delivering innovative products and services, according to statements made to CBS News and The Financial Times.

Apple's AI features remain under development even as rivals Google and Samsung have been rolling out more technology on their devices. According to court filings, Apple was caught off-guard by intense consumer interest in the Siri AI features. Buyers were angered after finding out that the new features would be released later than expected.

Ryan Clarkson, founder and managing partner of Clarkson Law Firm, which represented consumers in the lawsuit, said they are 'proud to secure a historic settlement on behalf of consumers who should feel confident and protected when deciding where to spend their hard-earned dollars,' as reported by Los Angeles Times. The firm emphasized that this settlement is significant given the current inflection point with AI technology.

Apple unveiled several AI tools, including an improved Siri assistant that was more conversational and capable, in 2024. The company touted how AI features will help people write, summarize messages, clean up photos and more. As the race to advance AI heats up, some experts say that Apple has been lagging behind its rivals such as OpenAI’s ChatGPT and Google Gemini.