Apple to pay $250M to US iPhone buyers over AI lawsuit

Apple (NASDAQ: AAPL) has agreed, without admitting guilt, to pay some iPhone buyers in the United States a total of $250 million to end a class action lawsuit accusing the company of misleading consumers about new artificial intelligence (AI) features and capabilities.

In a settlement filed on May 5 in the U.S. District Court for the Northern District of California, Apple agreed to set up the multi-million dollar settlement fund, from which it will pay between $25 and $95 to some users in the U.S. who bought an iPhone 15 and iPhone 16 between June 2024 and March 2025. According to some estimates, roughly 36 million devices are covered by the lawsuit, representing units sold in the U.S. during that period.

The consolidated suit was brought back in March 2025 by 65 purchasers of the iPhone 16 and certain models of iPhone 15, who alleged that Apple violated consumer protection laws when it advertised its new generation of iPhones as a breakthrough in AI, including significant enhancements to Siri, iPhone’s digital assistant.

“Apple introduced Enhanced Siri features as part of ‘Apple Intelligence,’ a suite of AI-powered features for certain iPhone, iPad, and Mac products,” read the filing. “Plaintiffs alleged that Apple showcased a fully operable Enhanced Siri features in its marketing campaign even though the feature did not yet exist.”

The plaintiffs went on to claim that they would not have purchased the products, or would not have paid as much for them, had Apple not made its false and misleading statements.

While the tech giant agreed to the substantial payout, it did not admit any wrongdoing, with an Apple spokesperson reportedly saying that the lawsuit was focused on “the availability of two additional features” in a lineup of many released as part of its 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,” added the spokesperson, according to a May 5 BBC report.

Per the settlement, Apple must send notices to eligible users of the iPhone 16 and 15 within 45 days of May 5.

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