Apple was sued for overpromising on AI. Now, it's paying $250 million to iPhone users.

Apple has reached a $250 million settlement in a lawsuit that accused the company of exaggerating Apple Intelligence's intelligence.

The suit claimed that Apple misled iPhone users about Apple Intelligence, the company's suite of AI tools, before and after the launch of the iPhone 16 in Sep. 2024. The settlement filing states that U.S. shoppers who bought certain iPhone 15 and iPhone 16 models between June 10, 2024 and March 29, 2025 may qualify to receive a portion of the $250 million settlement.

Multiple class-action suits were filed over Apple Intelligence marketing before being combined into a single action. According to the May 5 filing with a U.S. District Court in the Northern District of California, both parties in the case have now agreed to settle.

Once a judge approves the agreement, qualifying Apple customers will be able to receive payments between $25 to $95.

As is typical in class-action settlements, Apple has not admitted any wrongdoing, and the company defended itself in a statement to the New York Times: "We resolved this matter to stay focused on doing what we do best, delivering the most innovative products and services to our users."

Why was Apple sued in the first place?

When ChatGPT burst onto the tech scene in 2022, it ignited a global AI arms race. While companies like Google have been able to release competitors to ChatGPT, Apple has largely been on the sidelines of this race.

However, the company did introduce its own AI tools under the branding Apple Intelligence in 2024. Early promotion for Apple Intelligence highlighted a variety of use cases, such as writing emails and a more conversational, intelligent Siri.

The lawsuit states that Apple promised iPhone shoppers "enhanced Siri features" and advanced AI capabilities, and that its failure to deliver violated consumer protection laws.

Apple's stalled work on an AI version of Siri has been one of the biggest ongoing stories in the tech industry in recent years. The company is expected to finally release the updated Siri at the WWDC 2026 event in June, two years behind schedule.

In short, the suit claims that Apple oversold customers on AI features that weren't even built, and that remain undelivered today.

"We are proud to secure a historic settlement on behalf of consumers who should feel confident and protected when deciding where to spend their hard-earned dollars," said Ryan Clarkson, founder and managing partner of Clarkson Law Firm, one of the firms involved in the class-action case. "We are at an inflection point with AI, and the choices companies and regulators make now will shape how this technology impacts everyday people."

What iPhone models are included in the class-action settlement?

The agreement stipulates that shoppers who reside in the U.S. and purchased iPhones with Apple Intelligence features between June 2024 and March 2025 may be eligible for compensation. The phones named in the agreement include:

• iPhone 16

• iPhone 16e

• iPhone 16 Plus

• iPhone 16 Pro

• iPhone 16 Pro Max

• iPhone 15 Pro

• iPhone 15 Pro Max

Typically, class-action settlements like this require approval from a judge. Notices will go out automatically to many customers, and a settlement website will be created with additional information on consumers' rights in the case.

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