Apple has agreed to a $250 million settlement to resolve a class-action lawsuit alleging the company misled consumers regarding the availability of promised artificial intelligence features on newer iPhones.

Key Points

• Apple will pay $250 million to U.S. customers who purchased iPhone 16 models, the iPhone 16E, or iPhone 15 Pro variants between June 2024 and March 2025.
• Eligible claimants can receive between $25 and $95 per device, depending on the total number of valid claims submitted.
• The lawsuit alleged that Apple’s marketing deceptively promoted Apple Intelligence and enhanced Siri capabilities that were not available at the time of purchase.
• Apple denied any wrongdoing in the settlement, citing the successful rollout of other tools like Visual Intelligence, Writing Tools, and Genmoji.
• The company plans to integrate Google’s Gemini AI models to support future Siri upgrades, with full implementation expected by the end of 2026.

Why it Matters

This settlement highlights the growing legal risks tech companies face when marketing generative AI features that are still in development. It underscores the tension between aggressive product promotion and the technical reality of delivering complex software updates to consumers.