Apple to pay $250m to US iPhone buyers over AI features lawsuit

Published: (May 5, 2026 at 08:15 PM EDT)
2 min read

Source: BBC Technology

EPA Apple CEO Tim Cook on a dark stage with a neon Apple logo behind him. He is wearing a blue polo sweater, black jeans and white sneakers and gesturing his hands, while three other people on stage look at him.

Settlement details

  • The settlement was filed in a California federal court on Tuesday.
  • Apple did not admit any wrongdoing.
  • The deal resolves claims in a large consolidated class‑action lawsuit filed last year.
  • Eligible purchasers are U.S. customers who bought an iPhone 15 or iPhone 16 between June 2024 and March 2025.
  • Each qualified buyer will receive a payment ranging from $25 to $95.

Apple’s spokesperson said the lawsuit focused on “the availability of two additional features” within the broader Apple Intelligence rollout. She added, “We resolved this matter to stay focused on doing what we do best, delivering the most innovative products and services to our users.”

In a revised complaint filed for the consolidated class, lawyers argued that Apple’s marketing of its AI features amounted to false advertising:

“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.”

The complaint also alleged that Apple’s campaign was an attempt to catch up in the Big Tech race driven by companies such as OpenAI and Anthropic.

Context

  • Outgoing chief executive Tim Cook has faced criticism over the years for perceived lack of innovation at Apple.
  • Apple marketed Apple Intelligence as a transformation of Siri from a “limited voice interface into a full‑fledged personal AI assistant.”
  • Lawyers claim the iPhone 16 was shipped to consumers without “Apple Intelligence,” and that the promised “Enhanced Siri” never materialized.

“The iPhone 16 was delivered to consumers without ‘Apple Intelligence,’ and Enhanced Siri never came,” the lawyers wrote.

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