Apple Settles $250M Lawsuit Over Misleading AI Claims

Apple has agreed to a $250 million settlement to resolve a class-action lawsuit alleging false advertising of AI capabilities in its iPhone 15 and 16 models. The lawsuit, filed in California federal court, claimed Apple misled consumers by promoting "Enhanced Siri" features that were not available at launch. Under the proposed settlement, eligible U.S. customers who purchased affected devices between June 2024 and March 2025 may receive between $25 and $95 per device, depending on claim volume. Apple did not admit wrongdoing but stated it resolved the matter to focus on innovation. The settlement covers approximately 37 million devices, including all iPhone 16 models and the iPhone 15 Pro and Pro Max. Customers will be notified by email or mail to file claims on a dedicated settlement website. The lawsuit alleged Apple's marketing campaign shaped consumer expectations and purchasing decisions, with plaintiffs arguing they would not have bought the devices or paid less had they known the features were unavailable. The Better Business Bureau's National Advertising Division also found Apple's claims misleading. Apple has since released other AI features but delayed the Siri overhaul until later this year.