Some iPhone owners could get up to $95 payment after Apple agrees to
settle case for $250 million
[May 07, 2026] By
KELVIN CHAN
LONDON (AP) — Owners of some iPhones are in line to get cash payments of
up to $95 from Apple after the company on Tuesday reached a $250 million
settlement in a class-action lawsuit for false advertising of its
artificial intelligence capabilities.
Apple trumpeted new AI features for its virtual assistant Siri when it
rolled out the iPhone 16 in 2024, part of new software updates that the
company billed as “Apple Intelligence.”
The company has been scrambling to keep up with tech rivals amid the AI
boom but still hasn't delivered on the Siri revamp two years later.
The lawsuit, filed on behalf of U.S. consumers in the San Francisco
federal court for the Northern District of California, alleged that
Apple deceived consumers with a marketing campaign that promoted
features that did not yet exist and misled them into buying the devices.
Lawyers for the iPhone buyers asked a court for preliminary approval of
the proposed $250 million settlement, according to a court filling. If
approved by a judge, it would be one of the biggest ever for Apple.
The settlement covers about 37 million devices bought in the United
States between June 10, 2024 and March 29, 2025, including all iPhone 16
models and the iPhone 15 Pro and iPhone 15 Pro Max.
Owners are eligible for a payment of at least $25 for each device, and
that amount could go up to $95 depending on how many claims are filed
“and other factors,” the filing said.
Customers will be notified by email or mail that they can file a claim
on a settlement website, it said.
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The new iPhone 16 is displayed during an announcement of new
products at Apple headquarters Sept. 9, 2024, in Cupertino, Calif.
(AP Photo/Juliana Yamada, File)
“Apple has reached a settlement to
resolve claims related to the availability of two additional
features,” the company said in a statement. "We resolved this matter
to stay focused on doing what we do best, delivering the most
innovative products and services to our users.”
Apple, based in Cupertino, California, was caught off-guard by the
intense consumer interest in the Siri AI features. Buyers were
angered after finding out that the new features would be released
later than expected, the filing said.
They “would not have purchased the Eligible Devices or would have
paid significantly less, had they known Enhanced Siri features were
not available,” the filling said.
Apple's AI features remain in development even as rivals Google and
Samsung have been rolling out more of the technology on their own
devices. The company is expected to unveil its Siri upgrade this
year, most likely at its annual developer conference next month.
Apple said in its statement that it has “introduced dozens of
features” since it launched Apple Intelligence, such as Visual
Intelligence and Live Translations.
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