Apple’s promise of better AI has caught up with it in the form of a $250 million lawsuit.
The company agreed to pay a collective $250 million to some iPhone buyers in the US to end the lawsuit that was filed in California federal court last year.
The class action lawsuit claimed that Apple had falsely advertised artificial intelligence features in its new smartphones.
While the company didn’t admit any wrongdoing, it agreed to a settlement that will make people who bought an iPhone 15 Pro, iPhone 15 Pro Max, or iPhone 16 between June 2024 and March 2025 eligible for a payout.
With the settlement covering around 36 million eligible devices, according to The Guardian, buyers may receive between $25 and $95.
Nevertheless, the settlement still needs to be approved by the judge at the hearing on June 17th, 2026.
Users who are eligible for the compensation will be able to make a claim via the settlement administrator website, which will be available in a few weeks, according to Clarkson Law Firm.
“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, all while marketing them as the breakthrough innovation,” explained the case lawyers via the BBC.
The Apple spokeswoman also issued a comment on the matter, stating: “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 was accused of false advertising, selling the new iPhone 16 smartphone without the promised Apple Intelligence and enhanced Siri functionalities.
Talk about Apple Intelligence being integrated into new iPhones started in 2024. Later, the company released its AI variant for developers in beta.
In October of the same year, Apple released partial AI features for all users. However, they soon began opting out of Apple Intelligence.
Users would report that the AI provided inaccurate information, consumed device storage, and raised privacy concerns.
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This unfinished “product” has put the company in a tough position, as it arrived late to the game, when other AI agents were already much more advanced.
However, two years later, the company is still only planning the major release of its AI, which is scheduled for the Worldwide Developers Conference (WWDC) 2026.
FAQ about Apple’s $250M settlement
Who is eligible for the $250M Apple settlement payout?
Buyers who purchased an iPhone 15 Pro, iPhone 15 Pro Max, or iPhone 16 between June 2024 and March 2025.
How much could iPhone buyers get from the Apple settlement?
Buyers may receive between $25 and $95 per device.
Are only US buyers eligible for the payout?
The payout will be distributed to buyers in the United States. It’s not known whether consumers who bought it in other countries will also receive a payout.
How to make a claim for Apple lawsuit money?
The link to the settlement administrator website will be available in a few weeks.
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